Hot and Heavy

| Wednesday, October 10th, 2012 | No Comments »

I may have just wasted more time thinking of a title than I will spend writing this blog post. That’s ok, as long as it caught your eye and you are now reading this I’ll consider it time well spent. Let’s begin: this market is still hot. Believe it or not, we are going full speed ahead into October and in my little world of real estate there are no signs of slowing down. Here’s how I know.

I have tried to set up 3 showings this week (we are only on Wednesday) only to find out that all 3 homes (yes different homes) already had offers (multiple) and two of the three already had a signed around offer (crazy). That’s the first sign.

A colleague of mine wrote up an offer on a home last Friday that already had multiple offers. They added an escalation clause saying they would beat the next best offer by $5,000 and would go $20,000 above the asking price. Seemed like a solid offer until they found out that was only the 3rd best offer and they lost out. Nuts.

On October 5th there was an article in the Seattle Times that said King County’s median sales price for last month was up 7% from the same month last year. They went on to say the activity would be even more robust if more homes were available. (side note, how great is the word robust?) So sellers, take a hint…if you put your home on the market it will most likely sell because there are just not enough homes to satisfy all the buyers who are dying to borrow money at unbelievably low rates.

It is becoming more and more common for listing agents to put a deadline for offers. On a well priced property in a good area this is a smart idea otherwise they risk having their cell phone batteries die every 2 hours from all the phone calls asking if there is still time to submit an offer. This way buyers know they have a certain time frame in which to see the home and submit an offer. In this scenario, buyers should come prepared with their highest and best offer (H&B for those of us in the know!) The fact that listing agents are doing this is a classic sign that it’s a hot market.

Many homes are selling over the asking price. End of story.

Can this market stay hot and heavy through the fall? I sure as heck hope so.

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