Multiple Offers in Mission Viejo Real Estate are Rapidly Declining
The days of multiple offers in Mission Viejo real estate are no longer part of the normal process for home buyers and sellers. Which for some home buyers is cause for celebration! The cost of money is going up to something other than practically free. Whip-lash inducing home price increases are on the decline. Buyers and sellers today need to come to grips with what the return to a normal real estate means - since multiple offers in Mission Viejo real estate are sliding into ancient history. Here are the top 5 things to embrace about a normal Mission Viejo real estate market.
- It will probably take longer than one day to get your house sold in today’s market. The number of homes listed for sale, what the real estate insiders call “inventory”, in most Mission Viejo neighborhoods has gone up dramatically in the past eight weeks. In some areas, the inventory has quadrupled since May. That means there are four times as many choices for home buyers today. And this is directly linked to the length of time it will take your house to sell. Rather than measuring the Days on Market, more insider jargon meaning the number of days from the list date to the date the house sells, in increments of hours, we are seeing more sellers stretching out by days and even weeks until the home is sold. More sure signs that the market is normalizing.
- You’ll have more time to shop. This is the buyers’ side of the increase in inventory. Not only do you have more choices as we move toward a normal market, you’ll have more time to check things out. The frenzied pace of just a few months ago is much more relaxed today. You may even be able to wait until next weekend to go see that new listing. And yes, we’ll probably still call it a new listing after a couple of weeks on the market, rather than gasping in alarm and wondering what’s wrong with a house that is still available after 16 days.
- You’ll probably get to negotiate on price. This means buyers may make an offer lower than list price, and may not be facing any competition initially. Bye-bye to ”multiple counter offers” and so long, farewell to “give me your highest and best offer.” Sellers will have to do some soul searching and pencil sharpening and even budge a little from their dream price. Buyers these days are beginning to feel like they struck a good deal rather than they got raked over the coals.
- You may even get to negotiate on repairs to be made. Once you’ve negotiated an agreeable sales price and other terms like waiving contingency removals and adding in a two month rent back for the seller to find a new home, you may find yourself back at the bargaining table once the Home Inspector gets through. More and more Orange County home buyers are asking for either repairs to be made or a credit toward making repairs and sellers are often saying yes. At least to a reasonable list of repairs.
- And last, but not least, home mortgage interest rates, that’s insider talk for the cost of borrowing money to buy a house, have been on a roller coaster lately. We recently saw the largest one day jump up in interest rates EVER in the history of home mortgages. We’ll see how this impacts home prices and Days on Market going forward. And don’t panic. This is normal. Multiple offers in Mission Viejo real estate are declining as the market normalizes.