The real estate market on the North Shore is in an alternate universe right now...
- Homes are selling within hours of going on the market, AND homes are sitting for months on the market.
- Buyers are paying above list price on homes, AND buyers are getting great deals on homes way below list price.
- Multiple offers are common on many homes, AND no offers are being made on other homes.
Limited Inventory Allows for Higher Prices...
This past summer, if you didn't notice, the real estate market picked up considerably. It was almost like the good ol' days of 2004! People were excited to buy. Sellers were excited to sell.
While there was a limited amount of inventory, it seemed as though the market was really on an upswing.
As the summer wound down to a close, there were fewer homes being listed. However, there were still buyers scouring the Internet... looking for that perfect home.
Many soon-to-be buyers are actually renting right now. Buyers have stopped the practice of buying a house before their current home is sold. So many buyers prepare to buy a home by selling theirs first, and if they can't find one to buy, they will rent until they find that 'perfect home.'
But in the early fall, there were fewer sellers putting their homes on the market. So, the inventory fell.
Enter December...the anxious buyers have seen everything on the market for months. And, all of a sudden, the 'perfect' house shows up on the MLS. They see that it is the 'right price' and in the 'right condition.'
They frantically call their agent and rush over to see the house. The buyers (and three other families) are stepping over each other to get through the house. Then the buyers and their agent prepare to write the strongest offer possible... all of this within 24 hours of the house going on the market.
The buyer's agent has advised them that if they really want that house, they are going to have to pay a premium in order to beat out the other agents that are beating down the seller's door with offers. So, the buyers decide to write an offer ABOVE the list price. Hence, a bidding war begins.
So why are there still some homes that are sitting for months on the market?
Buyers are educated nowadays. They have done their research, and they won't even look at a house if it is overpriced...which most people can tell just from the computer alone.
In addition, if there is too much work to do on a house, a buyer won't touch it. They want finished...ready-to-move in condition.
Buyers are on the computer constantly looking at houses. They know these homes intimately, and they are fully aware of what the competition has sold for.
The agents that are pricing their listings a touch below what they think is a good price are seeing amazing results. And because of the multiple offer situation, the sellers are actually seeing a higher return AND their house is only on the market for a matter of days... talk about taking a huge weight off the seller's shoulder!
Not only have they gotten above list price, they only had to show their house for one day, and generally, the terms of the contract are exactly what the seller wants because of the multiple offer situation.
Don't Miss This Huge Opportunity...
While you may not be considering selling right now... talk to a real estate broker... your house may be EXACTLY what a buyer is looking for.
Because when buyers see the words "New Listing! Great location! New kitchen! Great Price" arrive in their in-boxes, you'd better get out of their way! They are coming for you!
Kati Spaniak is a Real Estate Broker with @properties specializing in selling real estate in Northbrook, a 37-year resident of Northbrook and a former Northbrook Village Board Trustee. Contact Kati at KatiSpaniak@atproperties.com