House Talk with Silvia Dukes

Today I almost had a flash back to a few years ago.  Back then, buyers desperately trying to find a home would bid above the listing price and often more than one offer would be submitted on the same property on the same day ensuing in a price war (although in reverse if you want to stay true to the definition).

I'm currently working with two sets of customers: one an investor who would like to add to his rental portfolio trying to pick up inexpensive units.  The other a young couple, first time homebuyers as such, who are looking for an affordable home.

Both are looking are REO properties of which there are many at good prices.  Customer 1 feels he still needs to bid quite below list price to get a "deal".  Customers 2 are putting in viable offers but get discouraged when they learn that there are other offers on the same property.

In both cases, these customers are competing against other buyers looking for much of the same thing: good homes at affordable prices.  Almost every time, numerous offers are submitted on the same property and of course the highest and best offer is accepted which most of the times is above the list price. 

Buyers have been conditioned in the last couple of years to make lower offers than the asking price, and once again as Realtors we have to inform our customers of the changing rules in changing circumstances.

Yes, it is still a buyers market. However:

• there are now many buyers
• prices are at an all time low
• buyers come with cash or preapproved loans
• when more offers than one come in on the same property, you may get a second chance to better yours, then again,
• when more offers than one come in on the same property, you may NOT get a second chance to better yours
• effectively buyers are once again competing with each other,
• good, well-priced homes do NOT stay on the market very long, and
• homes are now selling above list price.

If this trend continues, home prices will increase again, although at a much slower pace than they did those few years ago, yet eventually, the market will turn away from favoring buyers putting sellers in a somewhat stronger position once again.

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If you are thinking about buying a home or land for personal or investment use, or you are thinking about selling in Hernando County, Florida, including the communities and neighborhoods of Hernando Beach, Weeki Wachee, Brooksville and Spring Hill, Glen Lakes, Timber Pines, Silverthorn, Seven Hills, Sterling Hill, Pristine Place, and Southern Hills Plantation and you want to work with a local area Realtor who knows these neighborhoods please contact me.

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