Minneapolis StarTribune Reports:
According to Jim Buchta of the Minneapolis Star Tribune, and licensed real estate agents across the Twin Cities, multiple offers are happening more often than you may think.
Finally! An article in the local media that portrays a positive outlook on the residential real estate market. Yesterday, the story broke that more and more homes are going into multiple offers. Especially in the price ranges under $300k.
I have been telling my prospective buyer clients for over a year that they need to be prepared for a situation where they might pay close to, or more than asking price for a home. More often than not, if you like it, someone else likes it too. This leads to a bidding war. Seller’s dream!
Most buyers in this market think they have two things: Time to decide, and tons of homes to pick from. In some cases, they do. But in my experience, there are more buyers out there and less desirable homes than you think. One third of all homes on the market are bank-owned right now. Although they are typically the best price, they are often times a project that not too many buyers want or have the experience to deal with. So take one third of the market away and you have a pretty normal supply.
So what can you do to avoid this issue?
If you are at the point that you’re looking at homes with your real estate agent (why aren’t you using me?!), then you better be ready to write an offer. The first mistake buyers make is going out “just to look.” Well, sure enough with the deals out there, you are going to find at least one home that you “want.” If you’re not ready, i.e. you haven’t been pre-approved, then kiss that home goodbye. The best houses don’t last. Or, “the good one’s sell,” you’ll hear many-a-realtor say.
Also, if you are 100% ready to make an offer when you find the right home, MAKE THE OFFER! Just because you write an offer doesn’t mean you’re going to end up living in that house. You still have to get through the inspection, appraisal, mortgage underwriting, and a number of other steps. But, and it’s a BIG “but,” you can’t start the process of buying the home unless you get pen on the paper and write an offer. There is an old saying in real estate that I have found to be true for some buyers enough times to make me cry; “While you’re sleeping on it, someone else will be sleeping in it.” Meaning, while you’re thinking about it, someone else started thinking about it two days ago and now they beat you.
So, be prepared for multiple offers when you get into the buying-game. It could happen to you. Especially if you fall in love with the best house on the block. Despite what you might think and what the media is telling you, you’re not the only buyer out there.
