Well…Hello! It’s been a while!
I looked back today and realized I haven’t even checked in with you since November, 2015. That would be because, well, someone shot me out of a cannon! In the time since we last spoke, my own client activity has tripled what the national average is. And I am not alone. Here, in the Triangle, the market has completely turned on its ear to totally favor sellers, particularly for homes priced up to $400K.
Why? Because we have more people moving to our area than we have homes for them to live in.
As such, my buyers are averaging three to five offers on homes before they are successful in “winning” the home that they want. I took one buyer to a home the first day it was available to see and we were one of 35 showings on the same house in the same day. The listing agent told me she got four offers “sight unseen” on her listing before they ever came on the market.
I had a seller recently that came on the market Friday, started getting offers on Saturday, gave buyers through Sunday to get offers in and was able to choose from 6 offers by Monday.
Criteria for selection by sellers is not always about price either. Sometimes it is a better turnaround time that will sway them. A buyer who needs a loan will typically need at least 30 days to close from the time they go under contract. A cash buyer can usually easily offer to close in about half that time.
If you go back to May of last year, you will see where I posted a blog with the topic “The Turning Tide in Triangle Real Estate”. Where sellers were just starting to get at or slightly above asking price then, it is now more commonplace for them to get above asking. Now, that being said, this applies to homes that have been well cared for and prepared for showings. A fresh coat of paint and new flooring go a long way in bringing in multiple buyers. Homes that have fallen into disrepair don’t fare so well. So, if you are willing to put a little work into a home that you are buying yourself, there are still good homes at good prices to be had.
One more thing…last year, buyers only needed to put a few hundred dollars into their Due Diligence Fee. Now, even on the lower priced homes, buyers are having to pay $1000, $2000, or more, in Due Diligence money to have a shot at having their offer selected. And remember, this money is due to the seller when you sign a contract…and you will not get it back if you leave the contract… not if you leave five weeks, five days or even five minutes after you sign the contract. So you need to be committed to seeing this purchase through. There is much greater risk for buyers in today’s market.
Next time, we’ll pick back up where we left off, discussing the costs associated with your Due Diligence.