Home in Vienna VA (Photo credit: DougFrancis)
With all the media regurgitating the stale news that “real estate inventory is low”, it’s time everyone understands what it is like being a home buyer these days.
It can suck!
For example, yesterday a new listing popped up in Vienna Woods that seemed too good to be true. So, after they finished work, I met some clients at the house for a little look-see.
Understand that yesterday was Wednesday (not a weekend day) and there were already six business cards on the dining room table at 5:30 from well trained agents. I say that because some real estate agents don’t leave cards behind in an effort to be stealthy.
I had read about them on the Internet… and this resembled a flash-sale.
Anyway, after taking a look and considering the house a good prospect, I gave the seller’s agent a call. (yes, a real conversation) She had been fielding calls from agents all afternoon and quickly delivered her spiel.
She indicated that they planned to keep it available until Saturday night when they would review any offers. (part of strategery)
I conveyed that information to my clients, but, after careful consideration, they decided not to pursue the home.
March Madness x Bidding Wars = Flash-Sales
At 1:00 today the seller’s agent calls me to tell me an unbelievable offer had been presented and her clients were planning to accept it tonight. And, do my client want to make a competitive bid? There was a sense of urgency in her tone…
Yes, flash-sales have hit Vienna Virginia as home buyers frustrated with getting out-bid on homes get super aggressive.
Multiple offers seem so… so, January.
It’s March Madness for goodness sakes and it’s winner takes all!
Multiple offers seem so… so, January
These events really have been giving me flashbacks to 2006 when the market was hot too. The biggest difference that I see today is that lenders are not approving every loan, appraisers are not rubber stamping appraisals, and the builders have far less product to sell.
This time around I don’t feel that it is Realtor hype because the wounds lessons of 2009, 2010, and 2011 are still very fresh.
But even Warren Buffett thinks owning a home is worth your time and money… really.
On CNBC recently, Buffett said “If I knew where I was going to want to live the next five or 10 years I would buy a home and I’d finance it with a 30-year mortgage… It’s a terrific deal.”
In my opinion, home buyers need to recognize value quickly and be willing to set a top limit when putting together an offer, especially when a flash sale mentality takes over the market. There are values out there and not every home will get a stellar offer in 20 hours.
Let’s be careful out there.
