The market feels different right now. Actually, it’s been shifting for the last month, or so.
There are fewer phone calls on my active listings. There are fewer offers. Multiple offers are still common, but we’ve gone from 5 – 10 offers down to two or three. The buyers seem more cautious…
All the listing agents agree that the market is shifting. But, we don’t know where and we aren’t sure if this is just temporary doldrums.
Inventory is still very, very low. Interest rates are still very, very low. The same number of buyers are attending open house and clicking on Zillow and Realtor.com.
Are there opportunities for buyers in today’s market? There are, but you can’t get arrogant. It is human nature to over correct for any change in the status quo. Some buyers are assuming conditions favor them more than they really are.
As an example, a seller improved their list price by $100,000 and expected to receive multiple offers. They got those multiples, but some buyers saw the price drop as a sign of weakness and submitted low offers.
They were shocked and disappointed when they didn’t get a counter offer and didn’t get the home. They were confident that 1.) they were well qualified, 2.) the spring buying season was over and they had no real competition and, 3.) the seller was motivated.
While 1 and 3 were true, it is a big mistake to believe you have no competition. If the home and the price look good enough to you to make an offer, it will look good enough to a lot of people.
As we swing into the summer months, keep a sharp eye out for opportunity. Make sure your agent is an inventory expert and in close relationship with the top listing agents in the area. Most of all, make sure your agent is a negotiation expert and listen very carefully to that agent’s advice. Getting the right home is hard enough without an excellent professional in your corner every step of the way.
Click this link to meet our DIGGS Buyer Specialists or fill out this form (your information is confidential!!) and we’ll get in touch as soon as possible.