I never thought I would be saying this so soon, but the current pace of the local real estate market feels once again like 2004 – 2005. I hear stories every day about multiple offers on listings new to the market, and buyers losing out on bids despite making relatively reasonable offers.
So…what happened? Quite simply, the market has shifted. It’s real estate 101, and the bottom line is supply and demand. Some pockets of the market (certain price ranges and neighborhoods) have less good inventory than ready, willing and able buyers. What do I mean by “good” inventory? Move in ready, priced reasonably.
What does that mean for Sellers?
Great news! Market weary sellers who have been beat up by the buyers’ market of the past 5 years can finally gain the upper hand in a negotiation. And, although multiple offers are not crazy like they were in the past market run up (with buyers waiving appraisals and paying well over sales price to secure the home they wanted), they are often dictating full price (or close to it) with limited concessions.
Your agent can help you position your listing in a way to capitalize on the current market momentum, and develop a strategy to hopefully generate multiple offers.
What does that mean for Buyers?
It means that if you’re serious about buying, you need to be poised and ready to act. You should be pre-approved for a mortgage, and prepared to make a contingency free offer immediately if you see a house you like. Your offer should be clean and strong – your agent can help you negotiate with terms that will be perceived as favorable by a seller.
Prices will undoubtedly begin to rise as a result of this pendulum swing, so market wise buyers won’t wait long to pull triggers.
The most important weapon in a fast paced market? An experienced REALTOR to guide you, and help you make wise decisions. Email us at concierge@lizmoore.com, or fill out our buyer interview form below, and we'll be happy to match you with the right agent for your situation!
