This “crazy” market actually isn’t so crazy. It makes sense.
It is very easy to understand why home prices are up, why it is a Seller’s market, and why it is so hard to be a Buyer. The explanation is rooted in basic economics of supply and demand, loud and clear. Every time a new property is listed, there are multiple buyers interested in it. Clients are asking me simple questions during these simple economic times – when will supply of homes for sale increase, and demand be met? When should I buy? When should I sell? (HINT: NOW!) And where will I move to?
After 4 decades as a real estate broker, I feel more needed than ever. My clients need my coaching and my motivation, which come from my experience and my desire to help. Buyers are in a tough spot. They need to know about properties before they even hit the market. Many buyers try to see a place and it’s already gone. Or, they try to buy a place and they get “outbid”. On the other side of the transaction, Sellers need pricing advice. If a Seller prices too high, the property tends to sit and eventually it sells 8-10% BELOW market value. Conventional wisdom says that a Seller should list at a price that reflects the market value or a bit less, generating multiple bids. The best Buyer will be the one that is willing to pay the highest price, which IS the market. Then, there is the extra post-inspection re-negotiation after all parties execute the contract. Wow, are we successful Brokers on call or what?
None of this seems complicated. It’s actually quite easy to understand. It’s just hard on the tires and the soles of shoes. And sometimes on the soul too.