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It's a frenzy out there!

By Brian Lee Burke

Real Estate Broker/Owner with Kenna Real Estate ER40035749

July 07, 2009 10:35 AM

Trying to buy (yes, trying being the keyword) a house in Highlands Ranch, Centennial, Littleton, Arvada, Westminster, etc... under $250,000? So is everybody else. We have never seen anything like this! It's a frenzy out there.

we pulled up 10 houses to show to a buyer LAST NIGHT - today when Brian was checking 5 were already UNDER CONTRACT
Brian called to set up the showing on one house that the buyer is dying to see - the seller declined showing as they had already 11 showings TODAY
Brian showed 5+ houses to another buyer and every single house had one or more showings at the same time
we did a search for one of our buyers - only FOUR houses with their criteria came up - 60 were UNDER CONTRACT

There are a few problems we are facing in these situations.

many houses show they are active, when in reality all that is being worked on it to get the seller signatures
listings agents are not calling back! At all! It's really frustrating. We call before showing to make sure it's still available - nothing. We call after the showing if it's still available - nothing. Most of the time this translated into - the house is not available.
not getting confirmation that our buyers offer has been received (see above)

So what can you do if you are TRYING to buy a house in these circumstances.

be ready - have all your documents needed in order and ready to go (lender pre-approval letter or proof of funds, a check for Ernest Money etc.)
be prepared to give your best and highest offer you are comfortable with (when there are 10 other offers in the mix - low offers are the first to be put on the bottom of the pile)

If somebody says it's a buyers market I'll probably scream :)
All this is happening under $250,000 price point. Luxury homes are a totally different ball game.

Rita

Disclaimer: Kenna Real Estate Blog does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Sharon Paxson

Sharon Paxson, Realtor® EQTY Forbes Global Properties - Newport Beach, CA

Newport Beach Real Estate

Rita - I know the feeling. I have one buyer I have written 17 offers for trying to get in the game at that price point. Hope you get your client a home soon, my buyer is still waiting to find out the status of one (short sale).

Jul 07, 2009 11:10 AM

Charles Stallions

Charles Stallions Real Estate Services - Pensacola, FL

850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Are you showing them what they really want. I bring them in and we do an initial consultation with a $500 retainer that will be applied to the binder if they buy. But in this market I still don't show more than 10 and back in the good ole days it was about the same.

Jul 07, 2009 12:19 PM

Brian Lee Burke

Kenna Real Estate - Lone Tree, CO

Broker & Advising Expert-Kenna Luxury Real Estate

Charles - We show them what the want and when the buyer wants to make an offer (whether it's the first house or the 10th, 11th etc.) it's gone -literally within minutes of us showing it (or before except nobody told us it was already really under contract), so we move on to the next, and the next, and the next. It is nuts. Another agent we talked to who has done this since 1978 said he also has never seen anything like this and it all started just a week ago.

Sharon - we are working with 4 buyers right now with this situation. It's tough out there.

Jul 07, 2009 01:17 PM

Greg Nino

RE/MAX Compass - Houston, TX

Houston, Texas

Rita - Hey, I love the new buttons over to the right here! wow - all tricked out and stuff!

Jul 07, 2009 02:10 PM

Jeff Dowler, CRS

eXp Realty of California, Inc. - Carlsbad, CA

The Southern California Relocation Dude

Rita - same situation here at the lower end, even up to $400K. There are multiple offers on each property (most of which are REO and short sale at that price point) and buyers are feeling they need to make multiple offers. Definitely not a buyers market in this price range. And it's a real challenge for folks who are relocating unless they decide to start making offers based on their agent's preview and the MLS listing.

Jeff

Jul 07, 2009 03:14 PM

Well thanks Greg :)

Jeff - many of the lower end houses here are REO or short sales as well and buyers in many instances are even willing to wait now for a potential short sale approval - well, as long as they don't have to move soon.

Jul 07, 2009 03:23 PM

Debe Maxwell, CRS

Savvy + Company (704) 491-3310 - Charlotte, NC

The RIGHT CHARLOTTE REALTOR!

Hi Rita! That is GREAT news--doesn't matter WHAT is selling, just that things are moving to free up those who want to move up as well.

Have a wonderful Wednesday!

Jul 07, 2009 04:10 PM

Paula Swayne

Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA

Realtor-Land Park, East Sac & Curtis Park -Dunniga

Hi Rita!
There is actually a broker around here who leaves a message on his phone that says "Don't leave a message because I will not call you back."! Wow...how times have changed! I have to believe that what goes around, comes around. Those brokerages that won't treat you right will not be around when the market returns to normal. In the meantime, I really wish they would go ahead and release more foreclosures...there are 10 times the buyers to available foreclosures out there! It really creates a mess!

Jul 07, 2009 04:39 PM

The Somers Team

The Somers Team at KW Philadelphia - Philadelphia, PA

Delivering Real Estate Happiness

Rita - The frenzy is back !!! That is great, well at least some times. Other times it is very frustrating for the points that you mentioned. We have not seen that type of frenzy yet in Philly under $250K although activity is picking up for sure.

Jul 07, 2009 10:56 PM

It's a frenzy out there!

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