It's Raining Pendings!

Real Estate Agent with Goedert Real Estate

Over 50% of the time lately when a buyer calls in for information on a listing, when I pull it up and do the research I find the home has an accepted offer.  What a change from a year ago when it seemed everything was available. 

These aren't the higher priced homes, they are the priced to move foreclosures.  Buyers are learning the hard way that a good value doesn't wait around, if it looks like a deal to you, it looks like one to all the other buyers that are finally getting off the fence and getting offers on paper.  When you do find one to write on, chances are the response will be...."you are in a multiple offer situation, inform your buyers that they must submit their highest and best"  Now the pressure is on, what to bid, how bad do you want it, at what price would you wish you had gone a little more if the answer is "you lose"?

What has caused this huge change?  First, I think prices are sometimes just jaw droppingly low and I for one can't imagine them going much lower.  Secondly, interest rates are great, payments are so low that you end up paying less for a home than you would pay in rent in many cases.  Finally the tax credit, this is one case in which what the government hoped would happen, has.  How can you beat getting up to $8,000 back to spend however you wish, it's like finding a magic genie.  Buyers realize this and don't want to miss out on the golden ticket. 

As a buyer what are the lessons to learn here?  If you are looking at one of the low priced homes that are basically being priced to dump quickly:

Don't listen to the news reports that lead you to believe that you can put in low offers on everything and win the home, reality is that some homes are going for over list price when the bidding wars begin. 

Don't believe that you can wait and let the seller get a little more anxious before putting in an offer in an effort to bring the price down, the home won't be there. 

Do have an agent that will make sure you have the latest information on new listings ASAP through the automatic updates system.

Do call and make arrangements to see the home as soon as you get the information.

Do have your pre-approval or proof of funds in hand, you can't write an offer on a foreclosure without this.

Do write an offer that the lender will take seriously, everyone wants a great deal, the question is if the deal is already great do you want to play around too long and end up losing to another buyer.  At any moment another offer can come in and force you into a highest and best situation, if you haven't locked in the seller with an accepted offer.

Do the dance of happiness when your agent calls to tell you the offer was accepted, now the other buyers calling in can hear the bad new that the house is "pending" instead of you!

If you are currently looking for a home in Lenawee County and are ready to find your great deal, call me today and we'll get you started with the automatic updates so you can be one of the successful buyers in this fast moving foreclosure market.


Comments (5)

Kim Curran
RE/MAX Unlimited of Northern Virginia - Bristow, VA

Great post!

The market is heating up nicely in northern VA. Out of 56 listings today in one price range, only 7 were truly "active" status. The rest were multiple offers, bank is reviewing, accepting back up offers only.  Good for the home owners that our values are going back up but tough for first time buyers.

I have been telling my folks that I need all the paperwork in hand so that we can move right away on something.

May 28, 2009 08:56 AM
Jim Hale
Eugene Oregon's Best Home Search Website

No mystery here.  The federal budget is up.  Federal employment is up.  Northern VA is up.  Now if Obama can just hire a lot more folks everywhere...we'll all be up.  Right?

May 28, 2009 08:59 AM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

Its pretty close to that on my end. If they look good they are GONE.

May 28, 2009 09:05 AM
Valorie Stover, Realtor for Casta del Sol
Casta del Sol Real Estate / HomeSmart Everygreen Realty - Mission Viejo, CA
Mission Viejo,CA, Active Adult Community!

The market in South Orange County, CA is having the same reaction. The good priced ones are GONE GONE GONE! Buyers have to be ready to move on them!

May 28, 2009 09:11 AM
Gail C. Harris
Resource Network, LLC SFR, AHWD, ACRE, SMAR Board Director - Chesapeake Beach, MD
Reach the BEACH with Gail C. Harris (cell: 703.868

Love the posst.  I hope homes are still selling, can you give us an update post on the market in Lenawee County? :) Gail

Dec 22, 2010 11:05 PM