Thursday, January 10, 2013

Buying in a Seller's Market...

Wow, times have changed since I first started this blog.  Sometimes I get so busy helping clients that I don't look at it, or contribute to it for a long time. 

I have had my best professional year, this past year.  I sold one home for over 1.5 M, which made for a great year. 

But the end was tough!!!

There is NO inventory.  That creates a seller's market with dramatically rising prices!  Vallejo topped out in Dec, 2009 at 1204 homes for sale.  It bottomed out at 77 homes according to Solano Association of Realtors, and we are only in the 125 range today.

Vallejo is just one city, but it is that way all over CA right now.  I just sold two in different parts of SoCal.  Same story.

I have one buyer who has made 7 offers without success in entering into contract.   She is picky, yes, and she has a right to be, but... 

But she comes in just a little bit low every time. (She is not listening to me.)  This is a rising market and she is just below the top of an upward spiral.  An offer at $300k a few months ago would have bought a home that now sells for $400k.  So it is expensive, not to go big.  Now there is not much coming on the market that she can still afford, or she has to lower her expectations to buy now, or expect to commute a lot farther.

So GO BIG.  I will do what I can to bring the price down with appraisals, etc, when possible. 

You might say I am being self serving by saying "go big".  Not true.

If my buyer had offered $300K instead of $285K for a home 3 months ago, she would have closed.  Now if we buy the same type home, it will cost $400k.  I make more by waiting. 

But rather than wait, I would like to see you in a home now, before prices go up further.  I will get you your home for the least amount I can to get you into contract.  I promise.