Coming soon listings dropped about the time of the snow storm in February, and last week’s big snow dump didn’t help… coming soon listings have been flat the last three weeks. It has become so common that listings are coming soon before they become active that it is unusual when a new listing pops up unannounced. Pending sales are staying the course, steadily climbing and consistently hanging below last year as new and coming soon listings fall behind.
You can see from the chart below that showings slowed down a bit last week, likely because of the snowfall last weekend. But for new active listings, multiple offers as soon as they come on the market is still the new norm, fueled by building interest while in Coming Soon status. It will be interesting to see how next week’s supposedly spring-like weather impacts everything. This is the week that the pandemic was announced two years ago.
Some real life examples over the course of the last week…
Last Saturday I showed 7 active listings to one couple. As of today, 3 are pending, 3 are sold subject to inspection, and one that had already been on the market about 10 days when we saw it is still available. Most likely the 3 pending properties sold without an inspection… all of them had multiple offers.
I showed another property to another couple that just came on the market on Saturday with no Coming Soon build up. I don’t know how many showings they had, but we were able to make an offer in the midst of a snowstorm without competition. It felt like the perfect storm.
Yesterday I showed a property, the first day on the market… on my way home I got a call from the listing agent that they had already received a strong offer. She wasn’t sure if the sellers would put out a call for highest & best or not but it appears not because it is now sold subject to inspection with 0 days on the market because it sold before even getting through one day.
I had clients with similar success last month, other clients hoping for the same with a Coming Soon property coming active on Monday. We have scheduled an 8:00 am showing to be the first ones in the property, complete with a walkthrough consultation scheduled. They have their ducks in a row to make an immediate offer if they love it as much as they think they will.
If you were thinking this year the competition wouldn’t be as insane as last year, think again. It is starting even earlier, just as bad or worse because everyone knows what to expect this year. Some buyers are even submitting offers sight unseen before listings are active for showings to get ahead of other buyers. See below what our blog at Keeping Current Matters has to say about navigating a market where multiple offers is the new normal, along with stats demonstrating the increase in multiple offers over the last five years.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
If you’re thinking of buying a home today, you already know that the number of homes available for sale is low. But what does that really mean for you? As a buyer, low housing supply coupled with high buyer demand means you should be prepared to navigate a highly competitive market where homes sell fast and get multiple offers. Realtor.com has this to say:
“Homes also flew off the market at record pace as buyers put offers in the moment properties came up for sale….”
In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. That’s because when you find a house and submit an offer, it’ll likely be up against strong offers from other buyers. According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), homes today are receiving an average of 3.9 offers. That’s the most offers we’ve seen in January for the last 5 years (see graph below):
To help you navigate bidding wars with multiple offers, an expert real estate advisor is key. They know what’s worked for other buyers, what sellers are looking for, and how to help you prepare when it comes time to make an offer. Here are three tips to keep in mind that will help you make the best offer possible.
1. Know Your Numbers​
Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. Pre-approval shows sellers you’re serious, which can give you a competitive edge. You should also know making an offer at the home’s asking price may not be enough. Homes today often sell for more than their listing price. An agent can help you understand the market value of the home and what other homes are selling for in your area.
2. Be Ready To Move Fast​
Speed and the pace of sales are contributing factors to today’s competitive housing market. When homes are selling fast, it’s important to stay on top of the market and be ready to move quickly. Your agent will help you stay up to date on the latest listings and help you put together your best offer as soon as you find the home you want to buy.​
3. Make a Strong but Fair Offer​
​When you’re up against other offers, putting your best offer forward from the start is key. Lean on your agent to write a strong offer and use their expertise on which levers you can pull to make your offer as enticing as possible. One option is to wave some of your contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember there are certain contingencies you don’t want to give up, like the home inspection.
​Bottom Line
No matter what, your agent is your best resource for making an offer that stands out in a competitive market. Let’s connect to talk through what you can expect as a buyer and how to kick off a successful home search.
