We are starting to see a shift in our market. Where just last year it was common to see offers state “buyer is offering on multiple property and will buy only one” now we are seeing multiple buyers offering on the same property.
In one situation a cabin in rough shape on a town lot hit the market Friday and by Monday had 7 offers. Two of the offers for above ask and one by nearly 130% of ask price.
I have suggested that buyers consider the value of the property, not what will someone else likely bid.
· What is it worth to you?
· What will it appraise for?
· What do comparables show the value to be?
I for one am glad for this shift. It is yet another sign of a slow market correction. I see a pent up demand of buyers and sellers – fear of the market is what keeps the buyers on the fence. Short sale and REO is what the sellers are competing with. When the psychology of buyers allows them to feel good about moving into the real estate market the property demand may outpace the supply. Once distressed properties are absorbed the sellers competition becomes new home construction again and the RE market stabilizes.
Of course no one has a crystal ball, and I am not an economics professor. This is just my observational and the one thing for sure: CHANGE!
Comments (2)Subscribe to CommentsComment