Why today's market may offer more opportunity than the headlines suggest
Something interesting is happening in today's real estate market.
Buyers are looking.
They're spending considerable time online, watching new listings, comparing prices, saving properties and, in many cases, returning to the same listings on real estate websites several times over a period of days or weeks.
But many are also sitting back.
They're interested—but cautious.
And when they do decide to make an offer, there's increasingly an expectation that the asking price should be negotiated.
That combination is creating one of the more interesting real estate environments we've experienced in several years.
For buyers and sellers throughout the Grand Traverse area and Northern Michigan market, understanding what a more negotiable market actually means may be more important than simply watching where prices or mortgage rates go next.
The Market Isn't Weak — It's More Negotiable
Those are two very different things.
Recent Grand Traverse County housing data illustrates the distinction particularly well. Zillow's Home Value Index shows typical home values up approximately 2.2% over the previous year, while its latest sale-to-list data shows 61.6% of sales closing below asking price and a median sale-to-list ratio of approximately 98.7%.
Think about what those numbers are telling us.
Values can remain relatively strong while buyers simultaneously gain more room to negotiate.
That's not necessarily a declining market.
It's a market becoming more selective.
And that distinction matters.
Today's Buyer Is Watching — Sometimes for Quite a While
One of the most noticeable changes I'm seeing is just how much research buyers are doing online before taking the next step.
That's understandable.
Today's buyer has extraordinary access to information. Within minutes, someone can review photographs, property history, taxes, nearby listings, price changes and estimated values—all without leaving home.
That's useful.
But it can also make it very easy to remain on the sidelines.
There's always another listing to look at.
Another price reduction to wait for.
Another interest-rate announcement coming.
Another reason to see what happens next week.
Eventually, however, information has diminishing returns.
If you've found yourself returning to the same listing online several times, saving it as a favorite or comparing it repeatedly with other properties, that may be telling you something.
It doesn't mean you should buy it.
It may simply mean it's worth learning more.
If You Keep Coming Back to the Same Listing Online, Pay Attention to That
If you've found yourself returning to the same property on a real estate website several times over a period of days or weeks—studying the photographs, checking the price history or comparing it with other homes—it may be time to move beyond the computer screen and learn a little more.
Not because you need to buy it.
Not because you need to make an offer.
But because there is a considerable difference between browsing a home online and actually walking through it.
Photographs can't fully communicate setting, privacy, traffic, neighborhood character, quality of construction or simply how a home feels when you're standing inside it.
That difference can be even more significant with Northern Michigan waterfront property.
Two homes with seemingly similar frontage can have very different shorelines, water depth, exposure, privacy, bottom conditions, boating characteristics and views.
Sometimes seeing a property in person confirms that it isn't right for you.
That's valuable information, too.
But sometimes it reveals an opportunity—or a quality about the property—that simply wasn't apparent online.
And if the home feels right but the price doesn't, that's when it becomes worthwhile to take a closer look at the market data and determine whether there may be a reasonable negotiating opportunity.
Negotiable Doesn't Mean Every Property Is Overpriced
This may be the most important distinction in today's market.
I'm seeing an increasing expectation among some buyers that virtually every asking price should be negotiated substantially downward.
Sometimes that's justified.
Sometimes it isn't.
A home that has been on the market for several weeks or months may present an opportunity. But market time alone doesn't necessarily mean a property is substantially overpriced—or that the seller is prepared to accept an aggressive discount.
There is an important difference between negotiating intelligently and simply offering less because the market feels negotiable.
A thoughtful offer should consider:
- Recent comparable sales
- Condition of the property
- Length of time on the market
- Previous price adjustments
- Competing inventory
- Unique characteristics of the property
- And, when it can be determined, what may matter most to the seller
Sometimes there is meaningful room between asking price and market value.
Sometimes there isn't.
Knowing the difference is where local market knowledge becomes particularly valuable.
Negotiation Is About More Than Price
This is another point that sometimes gets overlooked.
The purchase price is certainly important, but it's only one component of an offer.
Depending upon the circumstances, buyers and sellers may find common ground through:
- Inspection terms
- Repairs or credits
- Closing date
- Occupancy
- Financing terms
- Personal property or furnishings
- Other contingencies important to either party
A buyer may care most about price.
A seller may care considerably about timing or certainty.
Understanding what matters on both sides can sometimes produce an agreement when focusing exclusively on price cannot.
That's what good negotiation is supposed to accomplish.
What This Means for Sellers
Sellers need to understand the other side of this changing environment as well.
Today's buyers are informed, patient and increasingly comfortable testing the asking price.
That does not mean a seller should automatically accept a low offer.
Nor does one disappointing offer necessarily mean the home is incorrectly priced.
But sellers should pay attention to patterns.
If several qualified buyers independently arrive at approximately the same conclusion about value, the market may be providing useful information.
Conversely, if the comparable sales strongly support the asking price, the condition is excellent and the property is well positioned, there may be good reason to remain patient.
The skill lies in knowing the difference.
And when a reasonable buyer does make an offer below asking, a thoughtful counteroffer can sometimes be much more productive than simply ending the conversation.
From My Perspective
One of the biggest changes I'm seeing this year isn't that buyers have stopped buying.
They haven't.
They're spending considerably more time researching properties online, returning to listings that interest them, comparing alternatives and watching price and market activity before deciding whether to take the next step.
And when they finally make an offer, many want to feel they've negotiated something.
I don't necessarily see that as unhealthy.
A more balanced market gives buyers time to think and gives sellers an opportunity to work with serious purchasers.
But there is a danger on both sides.
Buyers can become so focused on getting a “deal” that they lose the right property.
And sellers can become so focused on their asking price that they fail to recognize a qualified buyer standing in front of them.
Good real estate negotiation isn't about one side winning and the other losing.
It's about understanding where genuine value exists—and whether there's enough common ground to put a transaction together.
The Next Step Doesn't Have to Be a Big One
For someone who has been browsing homes online for months, “taking the next step” can sound more consequential than it really is.
It doesn't have to mean writing an offer.
It might simply mean seeing the property.
Or looking more closely at recent comparable sales.
Or understanding why a particular home has been on the market for 60 days.
Or asking whether I believe the asking price is supported by the market.
Those are small steps.
But they replace speculation with information.
And information makes better decisions possible.
Final Thoughts
Today's market in the Grand Traverse area and Northern Michigan presents an interesting combination.
Home values remain relatively resilient, buyers are highly engaged online, and yet negotiations have become increasingly common. Mortgage rates also remain an important affordability consideration, with 30-year fixed rates continuing to sit in the mid-6% range recently.
For buyers, that can create opportunity.
For sellers, it requires realistic positioning and patience.
For both, it makes good information, local experience and skilled negotiation increasingly important.
If there's a particular property you've been watching online and you're wondering whether there may be an opportunity, send me the address.
I'll be happy to give you my perspective on the listing, its pricing, the market history and whether I believe it may—or may not—be worth exploring.
No pressure to make an offer.
Sometimes the best next step is simply understanding the property a little better.
Gordon Liechti, GRI
The Mitten Realty Group