The Real Estate Market situation is becoming very confusing for everyone. We have the seller and buyer clashing with prices, the seller changing prices on a daily basis, the buyer pulling out at the last minute, and many more interesting situations that we as brokers are running into everyday. So obviously, as it is our job to facilitate things between buyer and seller we are looking for new ways to do so and trying to work with the market as it is. 

The market is still moving seeing as people:

- From abroad are buying more here since they are getting more for their dollar value and paying with cash. 

- Another side that is keeping things moving is the developer/owners that have loans in the bank that need to be paid off and are accepting banker checks and still selling for reasonable prices. 

- Thirdly, the fact that people want to sell and leave after the shock of the August 4th blast. 

- Finally, people want to get their money out of the banks. Money in real estate is much safer than money in the banks at the moment, even if the banker check is marked up significantly, the buyer isn’t losing as much as they would if they left their money in the banks. 

These factors do not make up enough of the market to keep it moving at a stable pace, but we always say something is better than nothing. 

The main and major factor being faced today in the Real Estate Market is Overpricing. This is what is slowing everything down. The seller wants to make back what they spent on the property originally if not make a small profit as well and the buyer doesn’t want to invest in something that will lose value.

So how have they been meeting in the middle?

Both parties are making sacrifices and the deal is being made based on logic. People that are selling are not overpricing. People that are selling and are requesting cash are pricing at the right price, not a huge discount that leaves them broke in the end and not a stingy discount that won’t get them a buyer. 

Where there is a problem there is always a solution and the solution the market has moved towards is part banker check, part cash. This unfortunately is also being taken advantage of which is why you should always deal with an agent that can make sure you will not be taken advantage of. Some sellers are taking a cash percentage from the banker check, which isn’t fair since the check has already been marked up. What should happen is, someone should appraise the property and give a final and legal estimate of the value, and then a percentage in cash should be taken from that and not the banker check. After knowing the value of the property, it is easier to make a clean deal on how much should be paid by check and how much should be paid in cash. 

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By Anis Kfoury
Real Estate Consultant
Sworn Appraiser