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Is The Third Time The Charm?

By Liz and Bill Spear

Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

April 28, 2017 04:17 PM

multiple offers are not a buyer's friend Right now parts of the Cincinnati market are going a bit crazy. Not nearly enough homes for sale, especially in the most affordable price points. We're working with buyers who are willing to buy in the West Chester/Mason/Kings area and we're seeing a consistent trend:

Homes are being swarmed by buyers as soon as they come on the market. Now we're not nearly as crazy as some markets in the country, but it's not been the norm here to have to compete with more than one or two other offers if you're a buyer. That's not the case currently, with nice homes getting 5, 6 or more offers. And that means there is ONE winner and more buyers that are having to continue their home search.

So perhaps it's not even the third time that's the charm, but house purchase attempt 5 or 6 (or more) before a buyer is the winner.

As an agent you can watch your buyer's approach change as the reality of the market sets in. The desire to have a home to call theirs leads to some "must haves" becoming...."well if we can get that, great, but if not maybe we can add it later!".

The desire to get a deal becomes "so how close to asking price do we need to get?" or even "so how much OVER asking price do we need to go?".

We're hearing of buyers dropping the appraisal contingency and it wouldn't surprise us if some get desperate enough to drop the inspection criteria too.

"Just get me a house!!"

But there has to be balance of risk and reward. Removing some contingencies such as the appraisal contingency could potentially cost a buyer tens of thousands of dollars if the appraisal comes in very low. Not a good situation to be in and one we're doing our best to protect our buyers from experiencing.

Is it frustrating to not win the offer? You bet! I WANT my buyers to win too, but with their best interests properly protected. So sometimes I have to be "Buzzkill Bill" and deliver bad news. But we WILL find the right house yet!

Ready to talk the specifics of buying or selling a Warren County area home? Call The Liz Spear Team of RE/MAX Elite at 513-520-5305 or email Liz@LizSpear.com.

Serving Warren County Ohio area home buyers and sellers,

Bill of Liz and Bill aka BLiz

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Eva B. Liland Century 21 Doug Anderson

Century 21 Doug Anderson - Lancaster, CA

Glad to be of Service 661-714-1643

I always advise my buyers to have a home inspection, that way at least they can back out if need be. We, as Realtors have to walk that tight line, at least you did your best.

If its not meant to be, there is always another around the corner.

Apr 28, 2017 05:04 PM

Kathleen Daniels, Prob...

San Jose, CA

Mick Michaud

Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX

Your Texas Lifestyle is Here!

This is a crazy time for RE. Lots of pent-up demand and optimism in the country that are driving the markets.

Apr 28, 2017 06:53 PM

Kathleen Daniels, Prob...

San Jose, CA

Paula Hathaway, REALTOR, LBA

Douglas Elliman Real Estate - Southampton, NY

...A Local Expert in all The Hamptons

Bill: The same thing is happening here and there does not seem to be a reprieve in sight! Then I took a look at a report from one of the accountants at Douglas Elliman and he had stats that were astounding to me--18% to 28% of all sales are pocket listings!! The higher the price the higher the percentage of "pocket listing" sales! This means that those houses never hit the market! Add the Zillow site "Make Me Move" which is a FSBO's dream and it is down right scary what is going on in real state...just MHO. Good post--thanks for sharing your information!

Apr 28, 2017 07:35 PM

Kathleen Daniels, Prob...

San Jose, CA

Joan Whitebook

BHG The Masiello Group - Nashua, NH

Consumer Focused Real Estate Services

I hope the market starts to "normalize" . There may be risks for the seller if there is no home inspection contingency.

Apr 28, 2017 07:52 PM

Kathleen Daniels, Prob...

San Jose, CA

Tammy Lankford,

Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA

Broker GA Lake Sinclair/Eatonton/Milledgeville

I had a contingent contract (on a home selling) on one of my listings for less than 24 hours before we got another acceptable offer and the kickout came into play. Been a long while since we had a crazy market. As a pimarily listing agent I'm kind of enjoying it.

Apr 28, 2017 09:29 PM

Kathleen Daniels, Prob...

San Jose, CA

Kat Palmiotti

eXp Commercial, Referral Divison - Kalispell, MT

Helping your Montana dreams take root

We're not seeing that many offers in my area yet. That would be frustrating for buyers, and would be more reason to be prepared with a great pre-approval and down payment before looking for homes.

Apr 29, 2017 03:41 AM

Kathleen Daniels, Prob...

San Jose, CA

Liz and Bill Spear

Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH

Transaction Alliance Cincinnati & Dayton suburbs

AB, Running our market reports certainly helps to understand the demands of our market and which pockets are heated up and which are "normal". Right now I know what to expect on any home in the $175-250k range in one community because I'd bet the same buyers are bidding against each other :)

Margaret, It's hard for anything but regret to come out of waiving inspections. Even if you get the home, you'll be second guessing yourself every time something goes wrong with the home.

Scott, Losing a home or two quickly changes a buyer's perspective on what they're willing to do.

Eva, It's our recommendation to always have them. Even if willing to take the home As Is, they need to know.

Mick, More buyers than sellers so basic supply and demand at work.

Paula, Not much in the way of pocket listings here although some of the builders use Z over MLS for listing their new construction builds.

Joan, I prefer more balanced because it keeps both sides on their best behaviors.

Tammy, My balance is more towards buyers than listings so this multiple offer demand situation isn't much fun.

Kat, Right now I'm walking into showings with an offer already pre-filled out so we're ready to go if the house fits. And it usually does.

Ronald, We have that too, and knowing that is all we need to know to get out to a home as quickly as possible.

Apr 29, 2017 05:29 AM

Sheila Anderson

Referral Group Incorporated - East Brunswick, NJ

The Real Estate Whisperer Who Listens 732-715-1133

Good morning Bill and Liz. I think you touched this very very well. You don't want to give everything up to win.

Apr 29, 2017 05:56 AM

Kathleen Daniels, Prob...

San Jose, CA

Shirley Coomer

Keller Williams Realty Sonoran Living - Phoenix, AZ

Realtor, Keller Williams Realty, Phoenix Az

We are definitely seeing multiple offers is the Phoenix area. Unfortunately, it takes some buyers while to understand their offer needs to be competitive and realistic with the area comps. I tell my buyers the seller's agent is keeping the seller updated on the market, so they know the value of their home. Recently had 2 buyers have to learn on the 3rd offer to be realistic. Realistic, not foolish. Alway get an inspection, even if you don't plan to ask for repairs, you never know what lurks in an attic or on a roof! (or in a recent deal, the sewer!)

Apr 29, 2017 06:13 AM

Kathleen Daniels, Prob...

San Jose, CA

Jeff Dowler, CRS

eXp Realty of California, Inc. - Carlsbad, CA

The Southern California Relocation Dude

Hi Bliz

Sounds like our market here! Good things is your buyers have you. It's so frutrating for buyers who are doing everything right and still can't get a home, at least not without multiple attempts. Good luck!

Jeff

Apr 29, 2017 06:46 AM

Kathleen Daniels, Prob...

San Jose, CA

Richie Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

Its a cycle boasting of where its at and stating clearly....I am heading toward...?

Apr 29, 2017 07:38 AM

Kathleen Daniels, Prob...

San Jose, CA

Kathy Streib

Cypress, TX

Home Stager/Redesign

BLiz- we went through this when we searched for a home in a seller's market back in 2004. Larry was already in VA working and it took a lot of looking but we didn't settle. We found a perfect home with the help and patience of our agent!!!

Apr 29, 2017 08:41 AM

Kathleen Daniels, Prob...

San Jose, CA

Joe Pryor

The Virtual Real Estate Team - Oklahoma City, OK

REALTOR® - Oklahoma Investment Properties

As someone who has been married three times I agree that the third time is a charm.

Apr 29, 2017 08:53 AM

Kathleen Daniels, Prob...

San Jose, CA

Kathleen Daniels, Probate & Trust Specialist

KD Realty - 408.972.1822 - San Jose, CA

Probate Real Estate Services

BLiz, It is interesting for me to see (read) how other markets are tending to what we have been experiencing for some time now. What were are experiencing in the housing market is something I still cannot get my head around ... and I live, breathe and eat real estate for a living.

Apr 29, 2017 10:13 AM

Chris Ann Cleland

Long and Foster Real Estate - Gainesville, VA

Associate Broker, Bristow, VA

My listings have had two buyers drop the appraisal contingency. Even so, I'm doing the same song and dance to meet the appraiser and give comps, updates, etc. to get the value in.

Apr 29, 2017 01:56 PM

Liz and Bill Spear

Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH

Transaction Alliance Cincinnati & Dayton suburbs

Sheila, There still needs to be some prudence in the offers.

Shirley, And that's definitely the truth. We can spot certain things that are tell tales as we walk around a house, but we're not in the attic and other places that might have serious troubles.

Jeff, It's definitely frustrating, particularly for buyers on a deadline to find a new home.

Richie, Fortunately here I don't think we're heading to a bubble, but there's a definite drive up in price.

Kathy, It definitely requires patience by all involved.

Joe, Then my buyers on house offer 4, 5 or 6 must be heading for a true blessing :)

Kathleen, Following other markets helps me understand how to handle some of these situations (e.g. breaking out the escalation clause, something that is rarely used by agents here).

Chris Ann, People will do what they have to won't they?

Apr 29, 2017 05:02 PM

Michael Jacobs

Pasadena, CA

Pasadena And Southern California 818.516.4393

Buzzkill Bill -- we have been experiencing an extreme sellers market for quite some time and unfortunately it's become more or less the status quo. Some will dive in and become homeowners while others won't(or can't) participate until they fully understand the concepts of compromise and patience.

Apr 29, 2017 09:17 PM

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Coldwell Banker Realty

Liz and Bill Spear "Removing...the appraisal contingency could potentially cost a buyer tens of thousands of dollars if the appraisal comes in very low."

Right on target - and - re-blog!

Apr 30, 2017 04:02 AM

Liz and Bill Spear

Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH

Transaction Alliance Cincinnati & Dayton suburbs

Michael, I could see some buyers just giving up and looking for a rental, but in our market even rentals are scarce.

T&S, Thanks for the reblog!

Apr 30, 2017 06:27 AM

Paula Hathaway, REALTOR, LBA

Douglas Elliman Real Estate - Southampton, NY

...A Local Expert in all The Hamptons

Michael-- In response to your response to my comment above: New construction and Zillow!! A match made in heaven; this way the agent can really lose out!! Here in the Hamptons, new construction commands more than 75% of the sales here at the moment! The brokerages could really feel the pinch if the builders are taking advantage of the Zillow "Make Me Move" feature!!

Apr 30, 2017 06:42 AM