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.