Well, I think it is safe to say that we have been in a buyers market for quite some time now. However, one of the signs that the market is changing is when we begin to see lowball offers. That is where we say this:
"Hello Bottomfeeder!"
I am sure we are all familiar with this person...This is the buyer who comes along looking for those can't pass up deals. Dictionary.com defines them as this: An opportunist to profits from the misfortunes of others. There are some other definitions they give, but I am going to keep this post nice. If you are wondering what they are, click here.
Before I go any further, I think it is important I take a moment and preface the rest of this post. I am not against someone being able to make a little extra money by being able to purchase a home at excellent prices and getting a great deal.
Now that I have that out of the way, let me continue on. This past week I had someone that looked at one of our properties. It is one of our listings that the seller requires us to be present at all showings. So, I was there with the other agent and the buyer. I overheard the buyer telling the agent that they were looking for steals. The agent assured their buyer that this property was the lowest price home in this community already by over $50,000. 
So, the seller decided they wanted to make an offer on the house! I was excited to hear they were interested in the home and could see what a great buy the house was.
So, the next day, their agent contacted us and gave us the offer. The people were offereing $200,000 less than asking price!!! Needless to say, the offer didn't go very far. This was the third offer like this on the three different properties that we have received in a week.
While part of me was quite annoyed at the offer that was being made, part of me leaped for joy. You ask, why in the world would you be happy to get such a ridiculous offer Jeremy? Let me explain:
If the bottom feeders are out there buying, that means they see the bottom of the market has hit!!! They have been laying low and waiting patiently for rock bottom to come. Bottom feeders don't like to pay a penny more then they feel they have to. There is no emotion attached to their purchase, it is strictly numbers to them. They don't care who they offend in making their offers because there are other properties available.
So, as the bottom feeders come back into you market, do not moan and grumble at their ridiculous offers. You never know, you may find someone who is really desperate and you may get a sale or two. And, start smiling because that means that once the bottom feeders come, next will come the rest of the buyers.
When I started in the business back in 2001 we were going through the same type of thing. 9/11 has just happened and people were afraid to buy, the stock market was in all kinds of turmoil, and the economy was in all kinds of craziness. The real estate market had come to stand still. As interest rates got lower and lower, the bottom feeders came along and began trying to steal properties.
After a few months, other buyers began to see what a great time it was to buy real estate, and so they began to inquire about property and the great value it possessed. Slowly but surely they began buying. That continued to increase all the way through 2004 which is when "The Market Boom" took place.
So in closing, remember this:
When the bottom feeder makes the lowball offer on your property, don't get upset or angry be glad, that means the rest of the buyers are coming shortly behind!!!
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I totally agree and it's a great way to look at the market. So the bottomfeeders are a clear indication that things are only going to get better. LOL I have gotten alot of those already. Now I won't get annoyed with them.