Remember the home buyers you worked with 12 months ago? The ones who looked at many more houses, wanted better houses than the ones on the market, and were able to find "deals". It seems that the so called deal is harder to come by. In fact, in Charlotte, NC, it can be hard for a buyer to get a great house at all without finding themselves in a bidding war against another buyer who is also willing to pay top dollar for the property.
It is no secret that we are in a seller's market but my concern is that home prices may be rebounding too fast. Everybody in real estate is noticing that bidding wars are back and some experts are predicting that the appreciating market will actually dip again in 6-18 months.
Basic supply (houses for sale) and demand (buyers in the market) drives the real estate market and home prices. Currently Charlotte is seeing a shortage of houses being listed and a steady inflow of buyers.
So Why Are Todays Home Buyers Less Picky?
They don't want to be but they also don't want to keep renting or living in their current location. What I am hearing is happening a lot is that the buyers will try to make a low offer on a house when they are in a bidding war. Once they do this on a couple of houses and they don't end up buying a house, one of two things happen:
- They get frustrated and decide not to buy.
- They end up making a strong offer on the next house that they find that fits their needs. It may not have everything they were looking for but they don't want to loose on another opportunity of forming a home.
It is important for todays home buyer to be working with an agent who really understands the market value of the houses in the neighborhoods they are viewing. When houses are selling fast they don't want to be unsure of the properties value and have to spend too much time researching. For a buyer, the only thing worse than losing a bidding war is finding out that they didn't even get their offer in on time.