I know many of you won't believe this, but the dirty little secret that the local media isn't reporting is that homes in the lower price range are flying off the racks. Yep...just like a bridal store having a super cheap sale on gowns with women knocking each other out of the way as they try to snatch up the latest deal, so too are investors and first time home buyers trying their best to win that little cottage home, out doing each other with above list price offers.
Like I said, you don't believe me, do you?
Last month I experienced this phenomenon first hand with a duplex I listed. With-in five days, I had five offers, all above asking price. There must have been some telepathy in the air because almost all of them were around the same price. I actually had to tell them to resubmit their "highest and best" offer. Who ever did the best, gets the house. Let me tell you, it was competitive bidding and I was truly surprised at how high some of the offers got.
Even better, I know an investor couple who are snatching up dilapidated foreclosures and rehabbing them to flip. Not only do they have to bid against other offers each time they find a home, but when it comes time to sell the property, they have to deal with multiple offers from first time home buyers. (They do fantastic rehab work by the way!)
So yes Virginia, there are some segments of the real estate market that are doing quite well. Multiple offers do exist and are getting more common.
It makes is hard to explain to a buyer why they need to offer above listing price if they want to get a home, especially when all they hear about is how cheap homes are. But if you want to purchase a home in decent shape and at a great price, be prepared to pay for it because in this market you'll be just like those brides you see on television...pushing and yelling your way to that perfect find.
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Same here. In both Maryland and Northern Virginia in counties within an hour commute of DC, homes in the $250,000 and below price range will sell in days and often over list.
The homes are going to cash investor buyers, no contingencies, no inspections, all cash, quick settlement. Most of these listings are bank owned and the banks have no interest in messing around with contingencies, low offers, etc.
We work with a lot of first time home buyers responding to the news about first time home buyer programs, which are largely not as helpful as folks believe from the news. These buyers believe that they don't need any money, don't need good credit and think they can buy for less than list and the seller will pay thier closing.
The first thing we have to do is give them the facts. The hard cold facts. If they want to compete with investor buyers, they better have some cash, good credit and be willing to compete on price.
That's our market for homes under $250,000.