"BUT it's a Buyer's Market"

"BUT it's a Buyer's Market"

At certain price points in my market area it's a seller's market, NOT a buyer's market like most news outlets report and I can explain this to buyer's until I'm blue in the face, but a majority of them don't believe me until they experience it for themselves.

Yesterday one of my new clients had their first taste of this "buyer's market." I showed her a brand new listing and by the time we left there were already 3 offers on it. Yep, 3 offers within 24 hours of being placed on the market (seller's it pays to price your house right).

My client was in complete shock and didn't understand how multiple offers could occur in this so called buyer's market. I didn't want to say "I told you so," but I did remind her about our previous conversation, the one where I told her that 100% of my clients have been in a multiple offer situation and homes priced right sell in a day.

It may be a seller's market at some price points, but not all!

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446


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Comment balloon 52 commentsMichelle Gibson • August 03 2010 07:24PM

Comments

Since real estate markets are very "location-based", even homes in the same city can vary from neighborhood to neighborhood.  The news gives the general consensus of what's going on in the country, not necessarily what directly affects your area.  It would be wise to listen to you.  Especially since they decided to hire you as their Realtor, Michelle!  :)

Posted by Heather Chavez, Real Estate Virtual, Assistant (928) 692-3235 (Second Self Virtual Assistance) almost 9 years ago

Michelle, The good news is that your client drank the cool-aid and now they know! It’s a learning experience.

Posted by Kathleen Daniels, San Jose Homes for Sale-Probate & Trust Specialist (KD Realty - 408.972.1822) almost 9 years ago

It can be a difficult concept for buyers to get their mind around, especially since the media gives a generalized view of the housing market.  As we know, it's local trends that count when it comes to buying a house.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes Luxury Homes in L.A. (Charlemagne International Properties) almost 9 years ago

Whew, yes. It's that way here too. As much as people here the old platitude, 'real estate is local, local, local" they still listen to the national news and take that to heart.  Until they're in the trenches, they don't start to understand how a granular look is more helpful, even down to neighborhoods!

Posted by Karen Crowson, Your Agent for Change (Coldwell Banker Residential Brokerage) almost 9 years ago

Michellle, hopefully, at some level, your buyer will regain their memory regarding your conversation.  Even if they don't admit it....

 

Posted by Mary Kay Hopkins, e-PRO,GRI,CRS (Mary Kay Hopkins, LLC e-PRO, GRI, CRS, CRB) almost 9 years ago

Yes, I've seen this too in some price tiers, especially in some of the preferred neighborhoods. It's a hard lesson for buyers when they miss out...sometimes more than once...but thankfully, they eventually get it!

Posted by Lisa Orme, Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu (The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY) almost 9 years ago

Hello Michelle and yes it's a buyers market and you do have to act quick! Very nice post and featured at one of my favorite groups at AR ...

EXPRESS WITH WORDS AT ACTIVERAIN

VB ;-)

 

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) almost 9 years ago

And re-blogged/ re-posted!

I hope you don't mind?

VB ;-)

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) almost 9 years ago

Hi Michelle!  We're finding that here too--maybe not 3 hours but, if it's priced right, there ARE buyers ready to pounce!  Suggested for a feature--love your message AND your graphic too!

Debe in Charlotte

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) almost 9 years ago

Michelle

I would agree Wellington Florida is a seller's market.

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) almost 9 years ago

The market is very confusing for buyers... the national news give one impression, but I am reading a lot of multiple offer situations. 

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) almost 9 years ago

Michelle- I can't tell you how many buyers are losing out because they think in their price range this is a buyers market. Definitely not so! Multiple offers, cash offers, over the asking price offers... Katerina

Posted by Katerina Gasset, Get It Done For Me Virtual Services (Get It Done For Me Virtual Services ) almost 9 years ago

Michelle - Yep, the same here.  Most of my buyers start out with the same mentality and after losing a home (maybe two or three) they really wanted, then they usually get smart and stop with the foolishness of low-balling properties priced right and wasting days "thinking it over" instead of moving quickly.

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) almost 9 years ago

Buyers just have to get off the "sellers are desperate" horse.  Some homes are well priced, there is low inventory, and it is going to go quickly, probably for over asking.  Sorry guys, but that seller is setting his own market.

Posted by Jane Peters, Los Angeles real estate concierge services (Home Jane Realty) almost 9 years ago

Michelle, Great post, we are seeing that at some price points ourselves.  We have had a few multiple offers sell quite a bit above the listing price, (just like the old days!).  If the value is there, a buyer should jump on it, it may not be there long!

Posted by Tony & Darcy Cannon, The C Team (Aubrey and Associates Realty) almost 9 years ago

Even in a buyer's market a very well priced home can get a feeding frenzy on it if it is priced too low!  No matter the type of market buyers should be paying close attention to recent closed comparable home sale prices if they REALLY want that home - even if it is more than list price that they have to offer!

Hopefully your buyer learned their lesson :wink:

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) almost 9 years ago

Heather - This is very true, we have certain neighborhoods that have little, if no inventory.

Kathleen - Yes it is

Norma - It's definitely a learning experience for them

Karen - You're right about being in the "trenches"

Mary Kay - At least it confirms I'm not crazy

Lisa - Over the past 2 years I have had buyer's miss out and learn the hard way.

VB - Thanks for the feature!

Debe - Thank you, there are days I feel like it's 2005, but at half the price.

Lou - Absolutely

Joan - Multiple offers are definitely not a thing of the past that's for sure.

Katerina - Some of those buyer's have been mine until they start listening.

Donne - Unfortunately sometimes it takes losing a few homes

Jane - Homes are selling for over asking here

Tony - Yep, most homes priced right don't last very long.

Renee - You are absolutely right.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) almost 9 years ago

Hello Michelle:

 

Right you are.  I had a very similar experience this spring with local buyers who wanted a new home for their family.  We made offers on several different properties, all of which had multiple offers.  It wasn't until the buyer's got over the shock of what was happening that they got serious and took action before other buyers. They bought a great home they just love.

Posted by Brian Rugg, Sun City TX Real Estate - Georgetown, TX Real Est (Rugg Realty LLC Sun City Texas 512-966-3200) almost 9 years ago

Your story illustrates why buyers and sellers need to spend less time listening to the media and more time listening to their Realtor. As all markets are local, and most real estate reporting is national, the stories that we hear are often irrelevant to what is happening in the 'trenches.'

Posted by Holly Weatherwax, A Great Real Estate Experience ( Associate Broker, Momentum Realty) almost 9 years ago

Right now it is all about the pricing.

Posted by Dennis Martin, J.D. (Real Estate One Charlevoix) almost 9 years ago

Michelle- nice to hear from you!  Very different from a year ago...huh....???? Hope all is well!

Posted by Maya Galletta (ReMax Direct) almost 9 years ago

Rugg - Yep, my of my clients are in shock as well

Holly - Absolutely

Dennis - Yes it is

Hey Maya - The market has changed a lot over the past few years.  I hope all is well with you too!

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) almost 9 years ago

Gee...someone ought to write that down....

WHAT SELLS HOMES IS: PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE, PRICE,PRICE, PRICE, PRICE,PRICE, PRICE, PRICE,PRICE, PRICE, PRICE,PRICE, PRICE, PRICE,PRICE, PRICE, PRICE,PRICE, PRICE, PRICE,PRICE, PRICE, PRICE!

I guess someone did!

Posted by Tom Waite, So Cal-Apartment Bldg Investments (Thomas Waite Real Estate Broker) almost 9 years ago

wow...and everyone thinks all of FLA is going to be a buyer's market ad infinitum...

Posted by John Zappia, Maine Custom Realty (Maine Custom Realty) almost 9 years ago

Michelle, if the mainstream media ever figures it out, (nah that'll never happen!)

In our local market we have a "tipping point" at roughly $200,000. Below that figure there are multiple offers (of course all the properties are either bank owned, short sales or flips) and homebuyers in that price range often write offers for months at prices well above list. Of course most don't appraise, but that's a story for another day.

Above the "tipping point" there are fewer buyers and it requires a lot of marketing and sales skills.

Posted by Greg Cook almost 9 years ago

Location, location, location is what sells, however, pricing gets the attention to opportunities, doesn't it?

It's always a sellers market when the home is located in a suitable neighborhood that meets all the criteria of your buyers with scarse or no listings, so the perfect combination results in fast sales. The only challenge is finding the perfect combination, right?

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) almost 9 years ago

I just want to add that some clients, even after a consultation on this exact subject WITH sales data as proof, that the sellers markets ARE out there, some clients still ask "Can we try to make an offer below the asking, after all, the market is still so bad?"

By the time I pull out my sales data and review what we've already been through, low and behold, the property already received another offer...   Thank you media for instilling in the buyers everything that opposes what we are training our clients! 

NOTE:  If you want to buy at a "discount" (and I hate that word because market value is market value in any neighborhood), then shop at the discount store (example:  the listing that has been sitting for 300 days, not the listing that came up yesterday)

 

Posted by Robert Jarvis, MBA (Keller Williams, Chicago, IL) almost 9 years ago

Thank the doom and gloomers in the press.  As I explain to my clients, the homes are already priced to reflect the decline in home prices.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) almost 9 years ago

Michelle,

Same thing here in the San Diego area.  Our List to Sale price is 100% for the County with a 4 month supply of lisitngs.  Buyers read the national news and expect to lowball.

I tell them it is like the weather...not the same all over the US and then you have all the micro climates.  Those can change within a block, or even the side of the street if we are talking view properties.  It also varies with the price range and the location.

Posted by Dennis and Sunshine Smith, Making a Difference 4U in San Diego Real Estate (RE/MAX By-the-Sea (N Coastal San Diego)) almost 9 years ago

I like that you pointed out "If the house is priced to sell, then it is a sellers market".  I don't know how many buyers I have talked to over the last 6 months that believe it to be a buyers market, only to get their low-ball offer rejected.

Posted by Monica Atherton, Your Temecula Real Estate Gal (The Associates Realty Group) almost 9 years ago

I"m in a very similar market. Entry level singles in Arlington MA often have multiple offers on them. Even in today's market.

Posted by Jay Bradley (ReMax Leading Edge) almost 9 years ago

Tom - I couldn't agree more

John - That's not the case at all in some areas

Greg-  Unfortunately I don't see the  mainstream ever figuring it out

Kimo - Pricing is definitely key, if it's priced right it will sell.

Robert - I absolutely love it " If you want to buy at a "discount" (and I hate that word because market value is market value in any neighborhood), then shop at the discount store (example:  the listing that has been sitting for 300 days, not the listing that came up yesterday)"

Gene - This is true, the discount is that $900K home is now $400K

Dennis - The price point is key

Monica - Pricing it right will bring multiple offers

Jay - Yes

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) almost 9 years ago

I love the blog.  The same thing goes for Denver.  It's the same exact situation.  I'm a new blogger to ActiveRain but check out what I wrote about it as well for our area. 

Thanks! 

~Clinton

Posted by Clinton Porter, REALTOR/TEAM LEADER: GPS, SFR, CDPE (Keller Williams) almost 9 years ago

I can hear buyers dragging their feet from here...Oh crap, that's because I am dragging them! 

OOPS!

Posted by Jenna Dixon, Empowers You With a Better Real Estate Experience (DRA Homes | Cobb County Real Estate ) almost 9 years ago

Gee, I don't have those problems here with all our inventory.  Good post, congrats on the feature.

Posted by Lyn Sims, Schaumburg IL Real Estate (RE/MAX Suburban) almost 9 years ago

So true, so true, so true.  This market has some dislocation with some homes lingering and some flying off the shelf.  Pricing and location.  I love the buyers who think that cash will command a 30% or more discount, too.

Posted by Margaret Mitchell, Seacoast Maine & NH Real Estate (Coldwell Banker Yorke Realty) almost 9 years ago

That would indicate that your buyers absolutely need to have themselves fully prequalified by a knowledgable loan officer, so they know exactly what their purchase point can be.

Posted by Steven Cook (No Longer Processing Mortgages.) almost 9 years ago

The ONLY houses that are selling in our area are the ones priced right.  This seems to be the only motivation to get buyers to do something instead of wait and see which ones will drop in price next.

Posted by Dawnita Griffith, It does matter who you hire. (Meadow Lake Real Estate, LLC) almost 9 years ago

Michelle - LOL at comment #37.  Here in Los Angeles & Ventura counties, all-cash CAN and quite often WILL get a 30% or more discount over the highest financed offer.  Once again, a classic case of how extremely local real estate can be.

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) almost 9 years ago

Clinton - Great blog

Jenna - Say it ain't so, people dragging their feet.

Lyn - Thanks

Margaret - In my experience cash buyer's aren't getting anymore of a discount than a buyer who need to obtain financing.  It just goes to show that most seller's don't care if the money comes from a person's personal bank account or their lender's and they're willing to take the risk of the mortgage contingency.

Steven- Absolutely, not getting a buyer pre-approved prior to looking at property would be a big waste of my time.

Dawnita - The same holds true here as well.

Donne - Cash isn't king here either

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) almost 9 years ago

Michelle!  What an awesome post!  Absolutely....it's a Seller't Market if the house is priced right!  Price is key!!

Posted by Olga Diaz, Potter, Mng Broker, CRS, ASP, ePRO, ABR (COLDWELL BANKER TOMLINSON) almost 9 years ago

Olga - I couldn't agree more

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) almost 9 years ago

WOW Michelle 44 comments and not "Gold" Star from THE GODS, that is unbelievable!

VB ;-)

Posted by Robert Vegas Bob Swetz, Las Vegas Henderson Homes for Sale (Realty ONE Group) almost 9 years ago

I read a comment the other day that said the idea that real estate was local was nonsense... I wondered what planet the writer was from!

As you the commenters here have so clearly pointed out... even different neighborhoods in the same city are different.

 

Posted by Marte Cliff, Your real estate writer (Marte Cliff Copywriting) almost 9 years ago

It's still veeeeeerrrry Slllllloooooooow around here.  But its good to see that the market is in better shape elsewhere, it means our recovery will happen - and perhaps sooner rather than later.

Posted by Ruthmarie Hicks (Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605) almost 9 years ago

So true.  In stronger markets like ours here in DC, I have been seeing this for quite some time.

Posted by Justin Dibbs, REALTOR® - Ashburn Virginia Homes for Sale (Pearson Smith Realty) almost 9 years ago

VB - Good thing I'm not here for the stars otherwise I would be extremely disappointed :)

Marte - As you know real estate is very local and others have mentioned it can vary down to the block

Ruthmarie - I hope it starts to pick up in you area

Justin - Me too

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) almost 9 years ago

Michelle, We have seen this very situation in some sectors of our market. It's not until a buyer experiences the loss of a property or two do they realize that some areas are, indeed, in a sellers market.

Posted by Sandy Shores FL Realtor®, Melbourne Real Estate, Brevard County Real Estate, Florida's Space Coast (M & M Realty of Brevard Inc.) almost 9 years ago

All home sales depend on three things:  Cost, Condition, and Clutter.  If the price fits the other two then it will sell.  In Az, the market is "tough" but our Team is has been very busy and we see multiple offers on all nice homes that are priced right.  It doesn't matter if it is Short Sale, REO, Bank Foreclosure, or a normal sale.  The ones that don't sell are in bad shape, a mess, and priced out of the actual market.  It takes more work today to get the comps and to convince sellers to price their home for the market but if you work hard and do your homework you will be successful.  Survivors learn to adapt. 

Posted by Ric Mills, Integrity, Honesty, and Vast Real Estate Knowledge (Keller Williams Southern Az) almost 9 years ago

Some buyers just have to learn the hard way.  Much like children, as much as we try to warn them, they just have to see it for themselves.

Posted by Charita Cadenhead, Serving Jefferson and Shelby Counties (Alabama) (Keller Williams Realty) almost 9 years ago

I’ve coached my buyers that in this market, they are competing with multiple buyers for desirable properties. So if they really, really love this home, don’t low-ball your offer because…it’s not a buyer’s market!  The power is in the hands of the seller who will choose the best highest offer.

Posted by Bill Burchard, Broker, Realtor, Representing Buyers and Sellers (3B Realty: 951-347-3818, CA) almost 9 years ago

Michelle,

Still a rarity in my area except for foreclosures. I'm hoping some of your phenomenon heads north!

Posted by Irene Kennedy Realtor® in Northwestern NJ (Weichert) almost 9 years ago

Participate