There back........ Yes, it's true multiple offers are here once again. It was once thought that multiple offers only occurred in a booming market and that the possibility of them happening in a down market was slim to none. Think again. What drives multiple offers is supply and demand.
Although our market is still down in most areas our inventory is beginning to shift. Along with the amount of inventory the quality of inventory has changed. Many short sale and bank owned properties have been in poor condition. Although their prices were lower than in 2006-2008 buyers were unable to purchase them in light of the investment they would need to make to fix or upgrade these homes. Some of the short sales have been foreclosed on and are now bank or Fannie Mae/Freddie Mac owned properties. Slowly but surely these entities are realizing the need to present a better product in order for it to sell. In light of this new revelation they are repairing and/or installing upgrades to these homes prior to putting them on the market for sale. A repaired product coupled with a low listing price is leading to multiple offers in our current market.
The 'good' homes are starting to sell fast and in some cases are selling for more than the list price and with more than one offer. This is frustrating to the first time buyer with a limited budget as it once again makes home ownership begin to feel out of reach. What should you do if this is you? Watch the market for new listings every day. Be prepared to make an offer if the home fits your needs. Also be prepared to lose out on many homes. Don't give up! Keep looking. It may take several tries and competing with other buyers. When it gets to you remember why you are doing this. Home ownership is not a short term get rich quick event. Home ownership is a long term investment that can bring you a lifetime of memories along with a return when held and maintained.
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