One of my favorite quotes used to be, I am allergic to full price offers. Not so much anymore. I have found that the current state off the Real Estate market demands I take some Claritin and set the old rule book aside. Don't throw it away as I am sure it will still be useful in the distant future, but for now, things have changed.
Where we used to expect a list price was around 3% higher than the seller would take, and we would offer just under that number to see if we could get lucky, not so much anymore. With the extremely low inventory of homes on the market and the high number of buyers looking, we have created the perfect storm where the rules do not apply anymore.
Until we get a handle on the imbalance of inventory versus buyers, we are beginning to advise clients that if they want a home they need to be prepared to offer list, or even more for a hot property. Ah Choo! Sorry, the Claritin has not kicked in yet.
I have had several clients that just cannot bring themselves to offer list and have repeatedly lost out to full price or more offers. We are even seeing more escalation clause deals where buyers offer a price, but allow that to jump up to beat other offers up to a limit they set.
So for now, take your pills, put the rule book away, hold your nose, and make an offer the seller cannot refuse!
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