Monday, July 13, 2009

Yes Virginia, There Really are Multiple Offers

I know many of you won't believe this, but the dirty little secret that the local media isn't reporting is that homes in the lower price range are flying off the racks. Yep...just like a bridal store having a super cheap sale on gowns with women knocking each other out of the way as they try to snatch up the latest deal, so too are investors and first time home buyers trying their best to win that little cottage home, out doing each other with above list price offers.

Like I said, you don't believe me, do you?
Last month I experienced this phenomenon first hand with a duplex I listed. With-in five days, I had five offers, all above asking price. There must have been some telepathy in the air because almost all of them were around the same price. I actually had to tell them to resubmit their "highest and best" offer. Who ever did the best, gets the house. Let me tell you, it was competitive bidding and I was truly surprised at how high some of the offers got.

Even better, I know an investor couple who are snatching up dilapidated foreclosures and rehabbing them to flip. Not only do they have to bid against other offers each time they find a home, but when it comes time to sell the property, they have to deal with multiple offers from first time home buyers. (They do fantastic rehab work by the way!)

So yes Virginia, there are some segments of the real estate market that are doing quite well. Multiple offers do exist and are getting more common.

It makes is hard to explain to a buyer why they need to offer above listing price if they want to get a home, especially when all they hear about is how cheap homes are. But if you want to purchase a home in decent shape and at a great price, be prepared to pay for it because in this market you'll be just like those brides you see on television...pushing and yelling your way to that perfect find.

Friday, July 3, 2009

Ways NOT to Sell a House

There are obvious ways that should not be pursued when trying to sell a home. I really don't care what type of home it is, or what the circumstances are for the sale (foreclosure, short sale, etc), but there is just no excuse for the agents listing these homes to take photos like the ones below.

First of all, I do believe tomorrow is the fourth of July, NOT the fourth of January. Snow has not been seen in Minnesota since March, so why is the photo of this home still in the MLS? The white wire reindeer just scream "Buy Me".

Now this home is a distressed property...I cannot remember if it is a short sale or foreclosure, and every listing photo of this home shows trash and clutter just like this photo. I have to ask, why even bother? No buyer is going to jump on this home, unless it is an investor looking for a steal. It definitely doesn't have the "cozy" feeling that a first time home buyer is looking for in today's real estate market.

I guess I am constantly amazed that agents out there feel photos like these are acceptable. It doesn't take much effort to pick up some trash, or take a new photo in the summer. Sellers, please take a look at the photos taken by your agent to see just what type of marketing they do. Trust me, if you have photos like these, your home is NOT going to sell anytime soon...unless you list it for $1.