Here’s an overview of what it’s like to be a buyer or seller in this market.
What are we seeing when homes go live on our market?
First, most listings coming onto the market are doing so under the ‘coming soon’ status. We’ve done a few videos that delved into this topic, so be sure to explore our website to learn more about what ‘coming soon’ means. Second, a lot of agents are setting timelines for offers received in the lower price points before their homes accept showings or can be classified as ‘active status.’ The fact that sellers are confident enough to set offer deadlines before they schedule any showings points to how confident they are that they’ll receive multiple offers.
It’s like we always say when we’re out on showings: You don’t even need to look for the sign anymore—look for the cars and the people. When a home gets listed, especially if it’s under $450,000, it’ll get bombarded with prospective buyers. Maybe not all at once, but you’ll see people waiting to check in when you pull up to the curb and when you leave. Traffic is high, and buyers are very much aware of this.
In a lot of ways, this has created pressure for buyers to figure out how to make their offers stand out when so many others are interested in buying the same homes as them. Thus, we’re seeing a lot of creativity in the offers we’re getting for our listings, and the highest offer doesn’t always win. Some sellers are looking at how much buyers are willing to pay for their homes and noticing that there aren’t any comparables that are even close to justifying those high sales prices.
These same sellers, then, will look at things like contract terms—sometimes there just has to be a happy medium between a nice price and comfortable terms. Inspections are often being waived as well, and cash offers are coming into play too. If you’re a seller, picking the best offer usually requires having a lot of discussions about them.
More than anything, we want to highlight the fact that buyers must achieve a certain mental state to compete in this market. To sit down with a buyer and have a conversation about what’s happening is one thing, but once they start looking at properties and seeing other buyers writing offers, the realization that now’s a crazy time with a lot of activity and competition really sinks in. Even if you don’t want to enter into a bidding war, practically every listing gets multiple offers, so you have to be able to put your best foot forward and be comfortable with your offer.
You also have to be patient. Most things happen for a reason, so if you don’t get the house you wanted, the perfect one may still be out there waiting for you. It’s always a good idea to have backup plans in place. Your home purchase may not happen when you hope it does, but it will happen with a little patience.
If you have questions about this market or want our help in buying or selling a home, don’t hesitate to call us anytime. We’d love to speak with you.