It’s still happening here in West Michigan with no end in sight. I do understand the frustration of being a buyer and trying to purchase a home. I represent several buyers who are going thru this right now. I am now in the same position of buying a home for myself and it’s stressing me out just looking at the houses for myself. I feel that soon it will top off and go back to a semblance of normalcy in the market. On some of my own listings I’m seeing offers 10-15K above the asking price. You have to ask yourself the question is the house really worth it? It all comes down to the appraisal. When I represent my seller my job is to give them ALL the information that I have so they can make an informed decision. I tell them that at times the highest offer is sometimes not the BEST offer. I understand real estate is a numbers game but common sense is as well.
We (as agents) have to look at the big picture (objectively) and point out the low and high points of every offer we receive. We then have to leave our personalities out of it as we are not the owners but the professionals who will assist and navigate (sellers) thru the process. My hope is that our inventory will increase in such that there will be an abundance of properties that will meet the needs of the buyers who are wanting to purchase. I lived thru the crash (approx 9 years ago) and would prefer not to go thru it again. That was such a learning curve for me. The way the market is moving right now I wouldn’t be surprised if it happened again. I personally believe your house is one of the best investments to own but you have to be practical and know that the possibility of doubling your investment in less than 24mths is not the norm. Looking at various homes here where people buy substantially low and within 6 months or less after the rehab they are asking 2 and sometimes 3 times what they paid for it. There are so many areas in the city where some buyers clearly cannot afford to buy these houses then the multiple offer situation(s) may drive the price higher. What a vicious cycle. I also believe that real estate is cyclical and right now it’s still on the way up. But I realize one day that won’t be the case. What do you think about all this?
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