Thinventory is still a plague we see in many areas...lots of price ranges...different neighborhoods...there is such a lack of inventory...Sellers that get their homes and condos "all dressed up and ready to sell" are experiencing record profits while record prices are the order of the day. In days gone by...in some cases...both the Buyer and the Seller had a concern as to whether the record prices would appraise.
With multiple offers on properties...Buyers and their agents look for the "leg up" that will win the property bidding war. Desperation takes many forms...no inspection...HUGE deposits of earnest money WITH the offer (in our market 3 days after acceptance is more common,) Short closing times when possible with no charge rent backs for the Sellers if necessary.
Enter what we consider the most "dangerous"....the No Appraisal contingency offer. Ahhh...a sigh of relief to a Seller who may have a little voice that is even suprised at the elevated/escalated numbers on the offer. Make hay while the sun shines...the new "realty reality" can mean money in the bank....Sellers are clapping their hands and heels and dancing all the way to the bank.
The Buyers...driven by the market,..heightened emotions reign ....and the deepest pockets win...OR ....do they ? Are memories short ? Our memory is quite vivid when we had 36 short sales stacked up like cord wood...each with a minimum of two mortgages...divorcing spouses...lawyers who did not always agree....and "values" that were not as valuable as anyone wished that they were...and life happens...and real estate goes in cycles.
This post is not to predict gloom and doom or a rash of short sales as we experienced not that many years ago...it is meant to be a caution....casting common sense to the wind...may not be the best decision for a buyer...Was the House priced to sell ? An extra five figures hmmm. How well we know the Buyers who are going to stay forever...who have stable jobs and marriages...and then...
This has been a post that is meant to caution brought to you by Sally K. & David L. Hanson, Broker Associates with EXP Realty honored to be of service for all things real estate in southeastern Wisconsin.