Real Estate Blog - Do you Have your Eye on a Real Estate SLEEPER?

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Do you Have your Eye on a Real Estate SLEEPER?

You know what I mean...There is a home you have been watching for a couple of months and it is priced right. In fact, it is a steal of a deal. But you are still on the fence about buying a home and want to wait until that perfect moment. You are timing the market so to speak and waiting to see if seller of that "sleeper" is going to drop the price again. Well wake up bargain hunters...You might not be the only one with an eye on that sleeper and if you wait too long it will be gone.

A real estate "sleeper" is a home that is an amazing deal but few people, if anyone, is paying attention to it. Usually it is a great property, location, structurally sound and priced well but has not sold. In a buyer's market where there is significant home inventory but few buyers, sleepers are abundant.

Maybe the home was originally over priced and though it is now priced very well it is being overlooked because of high days on the market statistics.

Possibly several very similar homes went on the market at the same time and in the same condition. Picture for a second, three homes listed during the same week in a cookie-cutter development where all the homes have roughly the same floor plan. All the home are the same age, condition, and priced very well, but only one homebuyer comes through the neighborhood during the next two months. So after 60 days, there are two sleepers left that didn't sell. Since the houses are essentially the same as the neighboring home that sold, it's not that the homes aren't properly priced. This is another scenerio that will cause a sleeper in this changed market.

And then some great homes are "sleeping" on the market because...well, there is just so much darned inventory out there!

But if you are sitting on the sidelines and just watching your perfect home for another price reduction, beware. I have sold a couple of sleepers this past year throughout the north and east metro. In each case, nothing was happening on the property then BAM....we had 4-5 qualified parties interested in the home at the same time. In these particular cases, they weren't the cookie-cutter variety either. One home in Washington County/Forest Lake area had a one-of-a-kind wooded lot and was in a perfect location. After months on the market, without an additional price reduction, over half a dozen serious buyers suddenly appeared. People were nonchalant when I told stressed that the home had recently seen a sudden surge of interest. Many even "pooh-poohed" the idea and mildly accused me of trying to get them of trying to coerce an offer. When the first offer came in, the seller wasted no time in accepting and I had several parties, buyers and agents alike, shocked, and more than a little miffed, that it was suddenly sold!

If the sleeper phenomena had happened only one time this past year, I would consider it a fluke but I have experienced this situation on homes in Chisago and Anoka Counties as well. In some cases I was the listing agent and others I was representing buyers.

So homebuyers heed my warning, if you are on the fence watching a sleeper, now might be the perfect time to make your move...Or someone else might beat you to it!

****************************************************************************************************** If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

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If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet, Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

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Posted by Teri Eckholm, REALTOR® Anoka County Acreage & Lakeshore Homes on 11/07/2008 02:58 AM

Comments (67)

Real Estate Sleepers in the Home Buying Channel

anoka county, buyers market, buying a home, first home, forest lake, home buyers, mn real estate, real estate sleeper, washington county

Originally posted at: Twin Cities Real Estate Blog: Do you Have your Eye on a Real Estate SLEEPER?

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67 Comments on Do you Have your Eye on a Real Estate SLEEPER?

NOV

2008

That's the way it goes really. People just watch and wait and then one day it's gone. If you were going to stay in a home over 3 years chances are great that prices will go up.

Great advice Teri, I've had that happen too, as both a buyers agent and a listing agent. The nice ones, priced right will sell!

Buyers waited so long on one of my "sleeping beauties" till it went into forclosure. Now we are hassling with a short sale that might not be accepted. If you snooze...you lose.

Teri - The other thing I have found with sleeper homes is many times they suddenly POP, and your buyer is then in a multi-offer situation.

Buyers need to miss a few before they feel the urgency to make a decision before someone else does.

Hi Teri, we can never predict which home is going to be the one. We just has buyers wanting to make sure the home they thought was the one was indeed the one. So they continued to look even though the home they felt would be right for the family was available. They didn't find anything so they went back to write an offer and it was gone. Finding the right home isn't easy but once you find a home that fits...take action with an offer...or someone else might! Nice post Teri.

Experienced agent will tell their buyers that "the best house on the street" will always sell. If not right away, sooner or later. Usually sooner than the lesser houses on the block (area).

Then, from time to time, there will be a home that doesn't give easy access, no lockbox, hard appointments, barking dog, etc. It may have been on the market for a year and the barrier was just removed.

I learned a long time ago to pay little attention to DOM.

Hi Teri,

So true, we've all seen it haven't we?

I have one of these listed - comps are $100,000 more - looking for anyway to get the word out

It's true, if you see a house you love, go for it. My buyer last week fell in love with a house that had been on the market a while. By the time she was ready, someone else fell in love with that house too.

Teri, Isn't it amazing when a perfectly good home priced right languishes on on the market. It is a great time to be a buyer when it happens though. My luck as soon as my clients decide to go for it 3 other buyers do also.

Lately I have been coming across quite a few sleepers. I love the bed by the way:)

Teri, I would be so sad if the home I fell in love with got sold; I know people are on the fence and waiting; I imagine they'll be very sad if they lose out.

No one can predict when all of a sudden there is a lot of interest in the sleeper and the buyer is tstill sleeping and misses an opportunity.

Teri, Great post. I really can't understand the logic of waiting to see how a home would do in a few weeks. If you want to know just make an offer.

NOV

2008

There are sooooooooo many sleepers out there that many of my property investing friends are begging me to get back into the property renovation business. So far I've resisted. It's just too physically demanding on my old body - LOL. I am, however, advising some of them.

I'm applauding. I see way too much of this going on here now. Great advice Teri!

There is a foreclosure in my neighborhood that is a terrific deal. I can't believe it hasn't sold yet. If I could buy it, I would.

Great article. Home Buyers pay attention to what she is saying!

I have had one of these sleeper homes as well and it was amazing. We predicted it would sell quickly but after 3 months it was still on the market. Then one day- "bam" three offers in one day!

Great encouragement to those "fence sitters"!

That is what being a Realtor is all about. Who should know the best deals and who should get the best deals first. If Realtors are not adding to their portfolio now when will they? Just think with over one million Realtors out there what if half went and bought an investment home or two.

Teri ~ I think that our market as a whole is a sleeper right now. It seems that there are a LOT of people that want to invest in real estate right now, but they want to be 100% positive that prices are at their lowest point. The problem that prices are not going to increase until there is a shift in demand over supply. At this point the supply is fixed and the demand is... on the fence.

I've had that happen to me before...and everyone is in shock that it finally sold! Most of the time though the buyer will kick themselves and it spurs them to act faster...they often don't realize that their dream home could slip through their fingers that easily.

Hi Teri, I agree, we must careful, because you just might be sleeping when someone else decides to pounce on that great deal! We have been seeing more and more good and great deals on the market today and I think some are just not "seeing" them because they are too busy waiting...and I'm not sure they know what they may be waiting for! Congratulations on the feature!

Hi Teri, Great post--love the phrase "sleeper" and the picture...helps drive the point home. I have had this happen several times with buyer clients. I tell explain the market dynamics as you do here and then say something to effect, "if at this moment we think it is the best home on the market in the price range, somebody else will too!" Cheers, Harley

This is a terrific post, and a well-deserved feature. We don't have many sleepers here in Austin - they seem to get snatched up pretty quickly, even in a "tough" market.

I have a sleeper I'm showing again tonight. Unfortunately, this new buyer is somewhat of a sleeper himself, so we'll see if he wants to get a good deal or not.

We have several sleepers in our area now. When consumers are ready to buy, they should go first.

One of my listings is a sleeper...

Thanks for sharing

Rich

Charlotte NC

We have a whole bunch of sleepers here, Teri, our buyers are reluctant to make an offer. It takes a lot of guts to be the first to dive in. Unfortunately, buyers seem to be using herd instinct on home buying, they want to wait until the market heats up and then the sleepers will be long gone.

Isn't the saying " the early bird gets the worm...errr sleeper first?

My motto is "he who hesitates has NO lake house"

Your post also reminded me of a cute (I'll keep it short) story of some sellers that wanted to sleep on it after a CMA. When the listing agent called them in a couple of days they said they had decided to pray about it. Don't get me wrong I pray and I'm proud to be a Christian. But when these folks called a year later to list their house and said God finally told them too... I accused to agent of standing outside their window in the dark and saying "This is God, call Shirley to list your house" in a deep booming voice. We still laugh about it.

Nicely written post and I enjoyed the read. Isn't it the truth though, the property and price is right and then all of a sudden everybody has an interest like there's a neon sign hanging on the roof. It sure makes this business interesting.

Great blog post. I know of several sleepers in my market.

There are lots of great properties out there for bargain hunters.

I love the sleeper concept -- and I know of at least 5 wonderful homes in my neighborhood that would have been scooped up in minutes just two years ago.

HI TERI!

Great message to send to the consumers!! It's a huge encouragement to get them to buy.

Best,

So, so true! Once the home hits the right price, buyers are all over it. Personally, I haven't put in an offer on a short sale or REO yet that didn't have multiple offers... They are not for the meek and mild...

Teri ... I'm working on one like this now... actually had the offer written for a couple months. House just sitting there

You go girl! Let's get those buyers off the fence and get this economy rolling again. Very well written and I love the bed. It just reminded me that I need to turn this computer off and go get in mine.

NOV

2008

Teri,

Too true, good deals don't last forever.

NOV

2008

Joyce--As long as a buyer plans to hold on to the home, making an offer today or tomorrow shouldn't matter...except tomorrow it might be gone. :)

Mike--Some very nice ones have to sit for awhile but all of the sudden are gone! Thanks.

Lizette--Ain't that the truth...You snooze, you lose. Hope it works out for you and your buyers!

Sandra--Good Point! When they get "HOT" and several buyers are involved, the price can go up not down too.

Terry--It is the story of our lives sometimes teaching a new buyer the ropes...miss a few good ones and they are ready to write.

Gary--Thanks...And you are right...See a good one and take action!

Lenn--DOM can mean nothing...Shows your experience in assisting buyers when you realize this.

Lynda--This is true! :)

Thesa--Sleepers are all over the US now...All of the sudden yours will pop too!

Jen--If you see the charm in a home, others will too. It's sad when a buyer loses one.

Marchel--It is a great time to buy and the buyers are coming out...Lots of that kind of luck out there.

Bill--The sleepers are not hard to find! Thanks!!

Carole--It can be very sad...people need to take action on a favorite even in a buyers market!

Joan--And a similar opportunity might not be there for awhile either.

Mana--That's it exactly...when you see something, write the offer! :)

Russel--I can see the appeal to the investors...great homes, low prices...I bet they are seeing $$$.

Kris--Thank you and I will take my bows. :)

Diane--I'd bet almost everyone of us knows a great deal in their neighborhood or market. The sleepers are ALL over!

Judi--I'm trying to spread the word to the buyers out there...Now is the time!

Christine--I knew it wasn't only happening in Minnesota. These sleepers are all over!

Caren--Doing my best to get them off that fence! :)

Charles--It certainly would help the market wouldn't it?

Ryan--In macro economics that would be a true statement...but the micro part where one buyer is fence sitting on a specific house. He/she could be disappointed because good homes do sell...even in this changed market.

Sonja--That's the thing...the other buyers who delayed kicked themselves and their agents were frustrated that they will do more looking and weeding through the many, many homes that are out there for a gem!

Sandy--Thank you! It is quite a phenomena with the sleepers all over...and then suddenly they are gone!

Harley--Buyer's tend to think they are the "ONLY" buyer out there...sometimes there is a bit of a reality check when they realize they are not.

Jason--Thanks! You are fortunate in Austin. Sleepers seem to be all over everywhere else!

Connie--Hopefully he wakes up and doesn't miss out on the deal!

CR--I'd bet they will!

Rich--If we don't have one, most of us know of one or more sleeper listings.

Bonnie--So many old great sayings come to mind....Early bird catching the worm and You snooze, you lose...No need to wait out the market, write the offer and get the home. :)

Tammy--Very Cute! Love your saying and story...God tends to speak in mysterious ways...Did this listing agent ever admit to it? ;)

Debbie--We do have an interesting life....No deal is ever the same but there are similar situations out there.

Robert--Thanks! Seems to be sleepers all over!

Russ--Exactly!

Kerry--Isn't it amazing...Bet all five will suddenly be gone too!

Yvette--I'm certainly trying to get the message out! :)

Sherry--When a home gets noticed, it is noticed by one and all!

Roland--Buyers need to be careful when waiting...It could be gone tomorrow. Hope it all works out for you and your buyers!

Debbie--Subliminal messages for those late night bloggers...Glad you were able to keep your eyes open long enough to catch my post! :)

Rebecca--Deals are eventually found...Thanks for the comment!

Hi Teri-The saying 'You snooze you lose" comes to mind when I read This. It good to wait sometimes as long as we don't wait too long. Nice chatting with you. :-)

Teri I don't have enough fingers to count the number of times I have seen this happen, both to me and for me, Karen

Hi Teri...This is so true. It would be funny if it didn't leave your clients and you out in the cold sometimes. It is very difficult to sometimes convince buyers that a house may not be on the market forever and ever.

Good topic,

Thanks,

Kate

Teri, so true. I see lots of those sleepers, and just wish I had the money to buy them all up. ;-) Maybe Buffett could help me? ;-)

Sleepers are definitely one of the ironic situations in the market. it's there, it's there, and the client keeps an eye on it, you keep an eye on it for them - talking to them about great price, great location, good time to make an offer, and they say - yet again - no I'll wait. Then it happens! Gone in 60 minutes! I've seen it several times this year.

NOV

2008

Thanks for sharing this Teri. The same thing used to happen in my past life with cars. A car could be on the lot for weeks and no-one even took it for a test drive, then suddenly three people would show up the same day wanting to buy it after it was sold. Seize the day! If you want it, BUY IT! ~Pat

Teri,

I have seen so may "sleepers" on the market. They will just sit there for months or maybe even a year, and all of sudden out of the woodwork come several buyers with offers. It's strange how the timing is.

Brigita

Pat--Hopefully not too many are snoozing when their eye is on the sleeper or they will lose!

Kate--I know the feeling...so many people think the house will wait for them and them alone. Not true!

Teri--Now there's an idea...Bet he is investing in more than a few of these!

Alexsandra--Glad to know I am not the only one seeing this situation. I have quite a few saved listings for clients while they wait for price changes...Many disappear then the client wants to know, so what did it sell for? Geez!

Pat--I suppose anything used can fit this catagory...cars, antiques etc. Not a good idea to wait when you see something unique that you really want...Put in the offer!

Brigita--Funny how they all come out at one time but it really does happen doesn't it?

Hi Teri,
Those sleepers are the real bargains and someone will take notice at some point and grab them. The smart buyer will act now and take advantage of the situation.

NOV

2008

Cynthia--Exactly...nothing waits forever! Even in a slow market! :)

Exactly! There are many great deals out there, and there are others that are not great deals. Buyers need an experienced agent like yourself to show them the way!

NOV

2008

My idea of a sleeper is the home that has been beautifully renovated and upgraded inside but is a junkyard outside, lacking (so to speak) any curb appeal. That lack of curb appeal turns away probably 80% of prospective buyers. I'm in the other 20%.

JAN

Yes Teri, Sleepers are abundant for a variet of reasons ranging from marketing, preperation, disclosure and of course the lack of market confidence. The irony in my opinion, is that the nationwide market trends have over corrected the MN price points... JMHO... I feel the reo's we're getting are priced much below actual price points... thus generating multiples early in the listing periods for assets coming from california etc....

Great post..

thank you

frank

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