Good Monday Morning!
The past several weeks in the Middle Tennessee Residential Real Estate Market have been nothing but exciting.
Things got off to an early start in 2013 with “record Numbers of sales” beginning in January after years of “Doldrums.”
While there have moments of pause, the pace has not tapered as the inventory of available homes in many areas and price ranges is all but GONE!
What this has created for some Home Buyers is akin to stepping into a stream full of piranhas . . . It’s a veritable feeding frenzy for many Buyers.
There are good and not so good consequences when the market swings this direction. On the good side, Values increase (Recouping equity lost in the down times) and many home sellers are now able to make that move they couldn’t in previous years due to financial constraints . . . Fewer “Up-side down sellers” is releasing these “pent up” buyers into the marketplace.
The bad news is that Buyers are flowing into the market faster then inventory, so we are seeing multiple potential Buyers showing up within minutes of any new listing appearing.
Here comes the bluff part. Not EVERY house that hits the market gets multiple offers, but many Sellers and/or listing agents may bluff Buyer prospects into believing that if they don’t buy THIS house NOW, they’ll lose their chance because “There are multiple offers coming.”
Sometimes this is true . . . sometimes it’s a bluff.
Many Buyers don’t want to play this multiple offer game, but they DO want to buy a house . . . so where’s this teflon?
How can we call the Seller’s Bluff (Find out if the Seller is Bluffing)?
- Have your ducks in a row before starting to look at houses – Financing in place, ability and willingness to move SOON or later (Be flexible with timing to accommodate the Seller’s needs), and be prepared to submit an offer the MINUTE you believe this house is a good one for you.
- Know your own tolerance for game playing. If you enjoy the thrill of a multiple offer competition (For some folks, this is like going to Vegas to play the tables) and you aren’t 100% committed to any particular house, then enter the fray without emotional attachment.
- Use reverse psychology . . . Identify multiple houses of interest to you – Rank them in order of preference and move quickly – Submit an offer on the first (favorite) house and give it 48 hours to gain traction . . . If it bogs down in a swirl of multiple offers, move on to house #2 . . . Don’t stop looking until you’ve got something under contract
- When Seller tells you they think they’ve got multiple offers coming, make your first offer your BEST offer, so when they call for “Highest Best” you can relax and respond that they already have yours.
Don’t let’m see you sweat, and don’t allow their manufactured urgency compel you to do something you’ll regret later.
This is NOT a market for Buyers who are feint of heart. If you’re going to dive in, do so with PASSION and FULL Commitment and PATIENCE . . . and be prepared . . . I am certain you can meet with success.
Oh! If you have a house to sell . . . NOW is the time to connect with the Real Estate Sale Professional Specialist in your area (Start with a call to me :-))
Preparation + Patience + Persistence = Bluff Teflon
With love from YOUR resource for all things real estate in Middle Tennessee and beyond.