We are now seeing that buyers are rushing to those properties in the good locations/established neighborhoods that are priced well. That's good news for some but not for those buyers who lost out on a property they loved. Many buyers today are scratching their heads in dismay because they have heard there are DEALS and that they have the POWER yet many buyers are experiencing something quite different.
Just last week, I took out a buyer to see a new listing. There were over 50 people that came to the open house and that was amazing since the open house was not even advertised! We wrote an offer the next morning on that property but found out that the agent already received 3 other offers! I had a difficult time explaining to my client, who was also a first-time buyer, that she had to rush and to fight for this property. Most buyers think that this is their market and are surprised and angry to experience something reminiscent of a few years ago.
My client couldn't believe that someone would pay "asking" in this market and I understood her confusion because looking at current sales in the building, the asking price could have been a little high! So why did these buyers rush to make offers? This is what many do not quite understand. The reason is that the current supply of properties also effects the results. In this case, this property, according to recent sales in the building, may have been a little high, but considering the existing inventory, it looked like a DEAL. When I walked into the property I was equally amazed because I had seen nothing in the area that offered this much value. My buyer lost out on this property in Brentwood, California. After much discussion, my client did agree to fight for the property and did offer the "asking price " in the counter-offer she was provided. Unfortunately, my client who is a doctor with excellent credit did not succeed here because the other buyer offered over asking and with ALL CASH. In this case the "all cash" was a plus since the accepted price may not have appraised.
If you are a buyer and do not wish to compete in this manner then consider homes that have been on the market for over 100 days and those homes that are also over-priced. Here you will most likely be the only interested party and will have the time to perhaps negotiate a great deal.
Think about it. If you wish to discuss this more, feel free to call me.
Connie De Groot
Coldwell Banker - Los Angeles
http://www.conniedegroot.com/
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