Sellers market returns as buyers look to cash in on low rates
In the last newsletter, we discussed the upcoming home buyer surge that the MBA (Mortgage Bankers Association) forecast for late this year and into early 2015. Unfortunately, this surge is already upon us here in the Portland metro area. It actually began in late October. In fact, many realtors® are reporting receiving multiple offers on the same day that properties go live or post price reductions on MLS.
For you as buyers, we’ve seen this before. Lots of frustration if you are unable to go view a property that really has your interest the day you learn it is listed. And, if you are lucky enough to see the property, those competing offers often drive the price higher than the initial asking price. The ramifications of this type of “buyer frenzy” WILL definitely drive home values up, at least for the short term, and will again price many buyers out of the market they were looking to buy in.
My best advice for handling this huge increase in buyers and resulting home sales is to try to get out to see a property the day it is listed, if at all possible. Even when multiple offers are submitted, this will insure that your offer is one of those considered. Once offers are presented to a seller, the seller is obligated to respond, usually within 24 hours, so you could lose the opportunity to even view the property, never-mind make an offer if you wait.
Many of you have asked if you can go see a house that went pending before you had a chance to view it, just in case the deal falls through. The answer is “sorry, but no.” I can actually lose my license or be heavily fined for showing you a home that is already pending, so your frustration as buyers is shared by all realtors who have to work doubly hard just to make sure that we check on any property you want to view to make sure there are no offers already on the table.
It’s crazy out there, but the good news is that new homes are being listed everyday. So keep an eye on your email as new listings are sent out (if you are set up on RMLS with me) as often as 6 times a day! You will be among the first to know when new listings hit the market which will give you the best chance to be among the first to view the home.