If it is a Buyers Market, Why are there Multiple offers?
This was the question posed to me today from buyers that I have been working with on finding a home they like within their budget. Their budget is under $200,000.
They were a little frustrated today because just like a student in the education process - sometimes it takes a student a few times making mistakes before they realize the answer; even though the teacher has shown them how to reach the answer.
Each of us has our own way of learning. Some it takes longer and a few trial and errors to get to the solution even with our guidance and education. They need to have THE "AH HA" moment.
They want to know - "There are so many homes on the market under $200,000, so why is it that we keep running into homes that we like and they end up with multiple offers?"
There are MANY homes on the market under $200,000 that is absolutely true. But here's the thing....
You know how you go to the super market and there is an AWESOME sale on corn on the cob and you get there and what's left has all been picked through and rejected??? Then new comes in and buyers rush to get it? That is very similar to what is happening in our BUYERS market.
Everyone is looking for "just the right one." THE SUPPLY in this price range, IS LESS THAN THE DEMAND.
The MAJORITY of the buyers purchasing in this market are purchasing homes for sale that are UNDER $200,000!
Think about it - The majority of the buyers out there are purchasing the homes or looking for a home under $200,000. You are one of them.You are one of many looking for the same thing.
Are you with me so far? So let's go further:
The majority of these homes have been on the market for an extremely long time and fall into one or more of the following categories:
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overpriced for what they are
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in poor shape and are going to need $'s dumped into them
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Sellers won't come off their price
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not stick built
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too small
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Not in an area they want
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A short sale property
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The good one has multiple offers and your offer is rejected.
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and oh did I say overpriced and in poor condition?
Okay, so lets pretend these homes have been on the market for oh say 180 days already. Picture this - you have looked at or ruled almost all of them - correct? Why? Why? Because of one or more of the reasons above - right? And the good ones have sold -yes?
Well all of the buyers in this range looking for homes for sale are seeing the exact same thing that you have and have rejected them all as well. With me so far?
Okay, so now you have one or maybe two homes (if you are lucky) that pop up on the market (fresh supply) in your price range and look like good deals. You jump right on it and look at them and decide "YES! I want to make an offer!"
What do you think the buyers that have rejected all of the other homes are doing as well?
Here's where the education process we have been going through comes into play. You either go home and sleep on it (purely your prerogative as I warn you it will have offers on it if not today, tomorrow but you do need to make sure it is for you); or you decide to write an offer right then and there (that's the start of how you can acquire this home).
We sit and discuss what you are going to offer. We review how to make a clean offer and the things we can cut out and the things we can't.
Then we get to price. Here you waiver. We have discussed what we are going to need to do price wise. But here, here all of a sudden you turn that one home (which in reality is in HIGH DEMAND-remember all of those other buyers that rejected all those other homes as well) back in your mind into a "buyers market" mindset which I have just shown you no longer exists in your price range....
Go back now to the paragraph about all the buyers having seen and looked at all the same homes you have.....and REJECTED them just like you (or the good ones have sold) and here comes this fresh new well priced home on the market...
What do you think is going to happen? Absolutely CORRECT ! There is going to be more than one buyer elbowing to get this home as well.....hence MULTIPLE OFFERS.
That is why it is important to be prepared, have your ducks in a row and why I have been educating you on being ready to make your stand when the right one comes along.
I don't expect you to buy something that is not for you. But if the right one shows up, you need to act quickly, decisively and not waiver back into the "Buyers market" mindset or you will lose again to either multiple offers, or to a seller who knows they will get their top dollar because of other buyers that are looking at the exact same thing.....
"AH HA!!! You need to come to that "AH HA" moment.....
If you need help or information on the buying process and how to be successful in purchasing a home.... give me a call, drop me a line, or stop on by.... My business and passion is people and homes......
~~Valerie~~
Visit my website for more information about my area and homes for sale in Belfair, Allyn, LakeLand Village as well as Hood Canal and Puget Sound Waterfront Homes.
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