Last year about this time I wrote, “If you are wondering if this year’s market is as crazy as it was last year, the answer is yes…” …and the same is true this year!
Competition slowed down the last half of last year and the beginning of this year, but it is ramping up again as we get into Spring Market because of continued low inventory.
It seems all agents I talk to are saying we’re back to the craziness we had before interest rates started to rise last year and slowed things down. Buyers are acclimating to the ‘new normal’ and back into it. One of my clients said her rent is going up so it doesn’t make sense to wait any longer to buy.
Two weeks ago I submitted an offer on a house and learned we were one of 16 offers. He had a walkthrough consultation and made his offer not contingent upon inspection but his price wasn’t high enough to get the winning bid. Last weekend I submitted another offer for the same buyer… only 5 offers this time. He got the winning bid, even subject to a full inspection!
I submitted an offer for another buyer as well last weekend. I learned more about the competition after learning she didn’t have the winning bid.
- There were 13 offers
- My buyer offered 9.2% over list price – 3 were at 14.3% over list price, and the winning bid was even higher
- About 25% included appraisal gap coverage of some kind
- About 30-40% waived inspections
- One offer was cash, but it wasn’t the winning offer
It sounds like the same advice holds true as for the last two years… the biggest hot points are still price, inspection and appraisal. ‘Love Letters’ are not as common any more, and many agents will not accept them to avoid being accused of prejudice.
Read more about multiple offers…
- Multiple offers are the new normal… things to consider before making an offer, tips for a creating a winning bid
- Multiple Offers Spring 2021… three hotpoints for winning offers
- What is an appraisal guarantee?
- If we guarantee the appraisal and it comes in low, how much more do we have to pay?
- No inspection? How about a walkthrough consultation?
- Skipping the home inspection? Get a walk-through consultation for your protection.
More questions? Ask me, I know stuff and am eager to help!
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
