Looking for a Sweetheart Deal?

With the many news outlets proclaiming our current real estate market, a strong sellers’ market, I’m always surprised at the number of home buyers who submit low-ball Offers these days! After a conversation last week with a buyer who is coming into town later this month, I feel like the news (and our conversations about the current market) is just not hitting home.

Some buyers have unrealistic expectations in today’s market – looking for that sweetheart deal, regardless of the current market conditions. So, I wanted to set the record straight…for now!

If you purchased your home during the downturn (The Great Recession), between the years 2008 and 2012, chances are, you did get a sweetheart deal then. You likely purchased your home in the 90-95% list-to-sales price ratio; some may have even gotten as low as 88% but, those were incredibly RARE in the Charlotte Metro region. During the recession, home list prices were down as well; some sellers were even desperate to get out from under a mortgage.

Some homeowners had lost jobs, some had reduced income, some had children going to college and others had parents who were suddenly in need of financial support as well. It was a sad, slow market but, if you were a buyer, you were able to get sweetheart deals at that time. Multiple Offers were incredibly RARE and if a real estate agent heard about a bidding war on a property that wasn’t theirs, we were envious! What a DREAM that was during The Great Recession!

Fast forward to 2017 – in many areas, list-to-sales price ratios are in the high 90’s, many even over 100%! List and sales prices are up considerably since the recovery began in 2012, meaning, those low-ball Offers just won’t land you that dream home you’re in search of!

Bidding wars are rampant and if you don’t go in strong, sellers are highly insulted…and often, will ignore your Offer! Buyers are out of town and flying in when a ‘hot property’ hits the market, only to find that they missed their dream home – homes are going under Contract in HOURS! Other properties may be a bit over-priced at the moment but, just when you decide to make an Offer, after the property being on the market a couple of weeks, there are multiple Offers on the table. Again, it’s a SELLERS MARKET!

My advice to you…

IF you are fortunate enough to tour a home that you love and it is not already under Contract, this may very well be your sweetheart deal…if you want to make it yours!

Sweetheart story for the week – I had buyers who walked into a property last weekend, and the first words out of the wife’s mouth were, “I’m in love!” They had read my articles on market trends and were prepared to heed my advice that I had also given them in conversation. They went in strong and won the deal!

When the wife was told that she won the bidding war, she said, “For me, it’s not about the money – it’s about the children being in a community that they will enjoy being surrounded by friends and lots of things to do…It’s about the lifestyle for me!” This was a sweetheart deal for them! As she said, a sweetheart deal is not always “about the money!”