We are in a “ZERO Inventory Market” in many areas of Middle Tennessee.
Many folks might think that we REALTORS are LOVING this FAST moving market . . .
While we DO love what we do, we’d prefer @ 3-5 months of inventory because that would present a more “Balanced” experience.
As things are now, Buyers MUST act IMMEDIATELY when a house comes on the market that has any resemblance whatsoever of what and where they want. The pressure is HIGH for these Buyers to drop anything and everything they are doing and RUSH over to take a look . . . and probably with a blank Purchase and Sale agreement in-hand so as to be able construct an offer within minutes of verifying that the house is, in fact, similar to what they want and in reasonable condition (and not sliding into a sink hole).
Even as these buyers do this SWAT team assault on the house, they’re likely to find themselves in competition with anywhere from 4-10 other Buyers . . . May the best offer win.
“Best offer” doesn’t necessarily = Highest price!
There are other factors that may be critical to the Seller:
Timing – Does the seller want to move in 30 days . . . or 90?
Contingencies – How tolerant will the Seller be for Inspection, “Approval of Spouse,” Appraisal, Sale of home, Financial contingencies?
Type of financing: CASH, FHA, VA, Conventional, Non-conforming
The Human side: The Buyer who is able to “win the heart” of the Seller might win . . . Perhaps with a heartfelt letter about how they can see their family growing in such a beautiful house
REALTOR rapport: REALTORS do not make decisions for their clients, but they DO have some influence in the comfort they might have with a REALTOR they know to be Honest and Ethical and detailed because they can more confidently assure the Seller that THIS REALTOR really knows what she is doing and you accept HER client’s offer, we can almost guarantee a smooth closing.
All of these things are important.
Any one of them being awry in an offer can swing the pendulum the wrong way for that Buyer.
Communication and meticulous diligence are more critical for ALL parties in super tight markets like this . . . There is little margin for sloppiness.
I showed 5 Houses in Murfreesboro yesterday. All 5 of the houses hit the market Friday afternoon or yesterday morning . . . and all 5 had more than one offer before I showed them between 11-1 . . .
Thursday – Same thing in Mt Juliet . . .
These days, buyers might write offers on as many as 10 different houses before they actually win one . . . and the one they win is likely to be a “compromise” (not exactly what they want) so there’s this other dynamic . . . an unusually high incidence of deals falling during the inspection or appraisal process because the Buyer wasn’t enough in love with the house to proceed.
We REALTORS know how to fix this . . . List more houses.
We know that the market will shift towards a more healthy balance as we bring in more, new inventory.
So . . . If you currently own a house or Condo and have even the slightest inkling of making a move – Up-size – Down-Size – Lateral move to a different neighborhood (or city) or simply a lifestyle change, let’s DO IT NOW!
I and the Vital Few Real Estate Sales Professionals of Pareto Realty stand poised and ready to guide our clients through this process of buying and/or Selling a house regardless of the Market Weather.
Connect with us when you’re in the mood for a move anywhere on the planet.
Published by Barry Owen
Strategist-CEO of Pareto Realty
Real estate sales Professional
Inviter-Facilitator-Practicer of Open Space Technology
Opening safe space for people & organizations to self-organize around issues & opportunities BarryOwen.US
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