We are all familiar with Black Friday - the day after Thanksgiving when Christmas shoppers, trying to grab bargains, have been known to fight over merchandise. It's beginning to feel a lot like Christmas - if you know what I mean. The Florida real estate biz is humming like we haven't seen in years. In certain price ranges and neighborhoods, buyers are getting worked up into a frenzy.
Here's a little anecdotal evidence for you... I've made four offers for a single client of mine over the last few weeks and we haven't been able to even negotiate them. In three of the four, there were multiple offers. With these, our good offers we beaten by full-price offers or similar offers that were preferable because they were cash. In the remaining case, the seller simply refused our good offer stating that there have been so many showings of her home that she will be holding out for a full-price, cash offer.
Now, this story is extreme because the houses are in the very hot low $100s, north of Marco Island, but similar stories are being told in all price ranges. The market has clearly shifted to a "buyer's market." The shift has been so dramatic in the last few months, that many buyers can't accept the reality. We are still getting low-ball offers on a regular basis. The difference is in the buyer's reaction to the low offer. A year ago, any offer was met with some regretful consideration by most sellers. Those days are gone. Now, they flatly reject them and are reluctant to look at any further offers from the offensive low-baller. They are feeling a little macho these days - a feeling that haven't experienced in six long years. Sellers are now very confident that another offer is around the corner and they are happy to wait.
So, what should a buyer do? First, understand that the market is still oversold. Despite the long-awaited reversal of the price curve, we are still near the bottom of an extremely deep trough. Historically, we are still priced around 2003 or 2004 prices which is before the real estate bubble started inflating.
Buy now! If you wait, even a few months, you will pay more. It's as simple as that. Waiting for a dip in the market before buying means you simply won't be buying. Want more proof? Stay tuned for my article on the F-word. Yep. Flippers are back and they are making money.