HOT markets are mainly in larger metropolitan areas but that doesn't mean there aren't "flash points" in smaller areas. Here in northern or central California, that can be a place like Silicon Valley with good paying, high tech jobs or places like the beautiful Monterey Peninsula that is just a highly desirable place to live.
'HEAT" as we see it on the Monterey Peninsula.
Because housing is so expensive near the ocean, any homes that come on the market under a $1 million become the focus of much attention. And in many cases, draws multiple offers.
Ditto in Salinas and several cities just to the south, all within less than an hours drive from the coast, where many of the workers live who service the high end Monterey, Pebble Beach, Pacific Grove, Big Sur and Carmel-by-the-Sea areas. Here you will find detached homes around $500,000 and condos around $200,000 - but not many of them.
WHAT CAN I DO TO COMBAT AGENT "PYROMANIA"?
1. Example :Selling agents try to whip up the enthusiasm for high bids by trying to play hardball. For example, one listing agent made it clear to us that the seller would not take less than $880,000 for a particular home in the Carmel Valley area - a very desirable area. What did it end up selling for? $800,000.
2. Example: Another property, this one a condo in Salinas, wanted all offers to be in on a certain date the following week when all offers were to be looked at. Now, a month later, it's still for sale.
3. Example: How about the multi-million dollar mansions and mini castles. Listing agents try to whip up enthusiasm, but the market is drenched with them.
SO WHAT IS MY STRATEGY IN THESE EXAMPLES:
1. Don't fall for these agent strategies. I wasn't born yesterday and neither were my clients.
2. Maybe this is the only condo on the market and the price sounds good, but check out the monthly HOA fees. Does your buyer really want to pay that?
3. Don't get stampeded, the market speaks for itself.
BUYERS, DON'T GET CAUGHT UP IN THE PYROMANIC RHETORIC!!!
My main point of this blog is that the market is not hot all over. Here on the Monterey Peninsula prices vary vastly and you might not find something in your budget in the most desirable areas.
And the homes that do come on the market at the low end of these desirable areas get a lot of attention.
LOOK AT THEM CLOSELY, ARE THEY OVERPRICED? DON'T GET SUCKED IN.
Debbie Reynolds is hosting this excellent contest on how to get a buyers offer accepted in a "Hot Market".