You Don’t Have The Luxury of Time In A Seller’s Market
Yep. It’s another one of those common sense posts (read: rants) where the title should be more than explanatory.
A few weeks ago we talked about seller’s markets and how bat shit insane they are. Having had this very informative and enlightening conversation, I returned to my job happy that at least some people were better informed. Sadly, there are still some basic things that people I see every day seem to miss. That means, that I am once more going to be bitching into the void. This may be informative for you. This may be common sense (especially after last time). Either way, it is, again, happening.
Last time we covered the craziness of the seller’s market. How homes are selling at a crazy pace and how there are not enough homes to go around. So, with all that going on, you would think that people would know that time is a luxury that they do not have. And yet, I am getting an increasing amount of people not realizing this.
Maybe they believe that the market is not really as bad as we have been saying. Maybe they are just in denial and think that the market will bend to them. Either way, it has not worked out the way they wanted. So, for this post’s story time, here are just three of the situations that have popped up in the last few months:
- Someone came in to see a home on Monday. Loved the home. Came back on Sunday talking about how they love their home and want to move forward. When I explain that the home is sold we have this fun chat.
- Me: I’m sorry, but that home is no longer available.
Her: (with all the confidence in the world) Yes, it is.
Me: (confused) It’s really not.
Her: (with attitude) I drove by yesterday and it was still showing an available sign.
Me: (completely annoyed) Yes it did, because I was selling it yesterday. I put the sold sign up first thing this morning. The home is no longer available.
Her: (Surprised Pikachu face) You sold it! But, I wanted that home.
Me: Then you should have gone under contract. We don’t hold homes while you make up your mind. Here’s what we have remaining.
- Me: I’m sorry, but that home is no longer available.
- They came in and got pre-qualified for the home. The monthly payment was higher than what they wanted. Told them I would let them know when another home with the same floorplan was available for less (aka: on a less expensive lot). That happened. I let them know. Nothing for a month. They reached out to me yesterday asking about other homes with that floorplan. We definitely have them, but they are now $20,000- $30,000 more home they initially wanted. With a worse view. They are officially out of the market now.
- Lastly, we have one where they had to cancel a home due to family and medical reasons. They came back about six to seven months later and bought a smaller home with a worse view for more money than the original home. They were very happy just to get into a home because they were being outbid left and right with resale homes.
In this market, the homes are not going to wait on you to make up their minds. Every time someone decides to hold off and think about it, another person who thought about it previously (and probably lost that particular home) is ready to go. It sucks, but that’s the way it is currently. We’ve all seen that one video with the apple by now right? It’s pretty much like that. If you haven’t here you go:
It’s funny, but it’s truthful. There are homes out there with over 30-50+ offers in less than 24 hours. Time is not on your side in this market. If you didn’t know, now you do. Spread the message. Thank you again for listening to my bitching. I am almost positive, we will be doing this again. 😂
Anyone trying to buy a home right now? How’s that going?
The market was almost this bad 4-5 years ago when we were buying a house! And now people down the street are selling for $200-300k more than what we bought ours for! Bonkers! We learned after getting outbid multiple times just how fast you need to be!
Yeah. It’s craziness for sure. Not showing any signs of stopping in my area either.
Thanks for reading.
You definitely have the luxury of time. Simply don’t buy when the market is escalating faster than inflation. Real estate has typically barely kept pace with inflation for the last 100 years. Prices usually regress to the mean eventually, just wait it out until the next bust. Buffett says don’t buy when people are greedy, wait until they are fearful. If you have to buy now, well, you just need to be resigned to the fact that you are probably paying too much. Look at 2007 prices versus 2009, this seems very familiar.
In my area, what’s driving prices up is people moving from out of state. Pricing in the states they are moving from is easily 200K+ higher than here so they bring that extra wealth and can easily offer 20K over the asking price. Most of the locals are already priced out of the market or stuck waiting to see if things will slow down. Different from 2008 times in that regard. I am hoping things slow down, but, for now, it’s not looking like it.
Thanks for reading.
Is your experience similar with folks who are both buying their existing home and selling a new home?
The resale market seems to be worse than new construction currently. Much more multiple offer situations. You make 10 offers on 10 different homes and lose all of them. New construction is a little more controlled, but then you are moving twice (which is honestly going to happen either way it seems). There are a lot more general agents bringing their buyers to new construction because there aren’t any other feasible options.
Thanks for reading!