I've known it for some time now. Our local market has been making a shift. Many think that we are still in a buyer's market, where buyer's can take their time to pick that perfect house and throw out that low ball offer. Well that's not always the case, in some areas, right now.
The well appointed, attractively priced properties (typically single family houses) in the $100,000 price range have been moving quickly for some time now. Often we are in multiple offer situations on these properties. These lower priced properties have the largest pool of buyers - first time homebuyers, investors, second and vacation home purchasers and international buyers. The highest bidder gets the house.
The bank owned properties are often a favorite, as they are often priced below market value, if they don't have too much work to do on them. Often there are repairs to be done, to bring the house to perfect condition. And often first time homebuyers using FHA or VA financing cannot purchase these properties due to the repairs that must be done. Cash buyers are often the bidders that are "winning" these, because there are no financing contingencies, no appraisals, repair issues and no hassles.
Yesterday, I called on a bank owned house that had been on the market for 16 days at $95,000. There had been 4 offers and they had accepted the highest and best offer, already. Often on bank owned properties they will accept multiple offers for a period of time, and then the selling bank will ask for each buyer's highest and best offer.
Later, I called on a $125,000 bank owned property that had been on the market for 10 days. There were 7 offers in on the property.
On Sunday, I made an appointment to show clients a $330,000 property that went on the market on Friday. The listing agent had to accompany all showings. When we arrived there was a couple already inside, looking at the property. We graciously waited outside. While we were inside, looking, the doorbell rang, and another set of buyers showed up to look at the house. There was a parade of buyers through the home. The listing agent called later to say that she had received an offer with the promise of another one coming in.
On Monday, I went out with buyers on a $300,000 house that went on the market the day before. I called the listing agent in the morning to double check the status of the property. By the time she called me back there was an offer on the property, again, with another one coming in. With the offer I wrote for my clients there were a total of three offers on the lovely house. The strongest offer bought the property.
So, here we are, seeing bidding wars on properties in various price ranges. Don't wait till it's too late, and miss out on that perfect house.
Sandy Shores Realtor, Melbourne FL Real Estate
Brevard County Real Estate and Investing
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That's right! A nice home at a good price will not last long. Maybe it's time to tell buyers to submit their best offer first. It will increase their chances to get the home they want.
Sandy, I have not seen this in North Brevard, still very slow. Maybe it is a Melbourne-Palm Bay effect where housing is stronger on that end of the county.
Hi Sandy,
Yes, the market seems to be heating up!
Ann Hayden in Chesterfield, MO
Sandy I can only think this is a good thing. I hope in time we will work our way out of this problem.
Hi Sandy, this is an excellent post and your consumers should take note of the shifting market. Those who keep waiting or who insist on the low ball offers are left behind. Well said!
Sandy, for the "cream of the crop" properties this is certainly true. Convincing the Buyer to offer above LP is difficult but this isn't so after they've lost the home they really wanted. The lower priced inventory is quickly disappearing along with the cash Buyers are using to absorb that piece of the market. I need to make a trip there this summer! Thanks.
We had a mini frenzy at the end of April but the air is still now and the shadow inventory of foreclosures is leaking into the marketplace...Good to see you back!
Hi Sandy, Things are definitely heating up around here. I'm booked for the next month or longer and my phone is ringing off the hook. Most of these calls, the people are trying to line up work to be done as soon as they close on their new home. We should be thankful because a lot of other markets are dead in the water.
-Paul
Hi Sandy - Entry level homes in good neighborhoods, are our hot market! And like Kevin said in his comment, Cash buyers are gobbling up a lot of that market!
Hi Sandy ~ Our market seemed to be heating up Memorial Day weekend and even have some lots under contract. I am always happy to hear about FL moving because it most always means we do after you. Our season has just began... Wishing you the best!
Hi Sandy, Hot Hot Hot! Your market place definitely instills a sense of urgency, we are not seeing that here yet.
Sandy, sounds like your market is on fire. We have some of this going on, bot not that much.
Sandy, I've seen this happening more as well. I had first-time homebuyers out a few weeks ago. They were going to think about a particular house we'd seen. There was also a parade of buyers. While they were thinking, the house went under contract as well as three of the other ones we'd see that day.
German, Sometimes it takes a buyer losing a couple of houses before they decide to put out their highest and best right away.
Gary, Interesting. I don't know how the northern end of the county is faring right now. I'm afraid there are many that are concerned about how the end of the shuttle program is going to effect the housing market in North Brevard.
Ann, It's has been brisk in our neck of the woods.
John, I agree. We can hope that this is a good sign to all of us. Only time will truly tell though.
Bruce, We have seen somewhat of a shift in our market, hopefully it is something that is here to stay. You're right - low ball offers are not going to get the house.
Kevin, The lesser priced houses are moving quickly. And often these homes wind up in bidding wars. Sometimes, we see some of them selling for more than they really should be, because of the bidding frenzies.
Paul, We have a lot of foreclosures and short sales on the market - that's for sure - and those are pulling our prices down. Thanks for the warm welcome back. You're a terrific friend.
Paul, I am so glad to hear that business is going well for you. We have been seeing the market pick up and we have been seeing more owners doing more home repairs, also.