What do you get with Multiple Offers?
Yes, I am in that kind of market. We have taken off and are white hot with low inventory in our affordable level housing. Buyers are lining up to view homes and it is like Black Friday scene as buyers try to view a home that just was placed up for sale that day. Crazy, exciting and frustrating.
The smile is from the seller who delights with the activity. Homes that were once felt to have challenges like a small backyard, small bedrooms, etc. are receiving star treatment and quickly going under contract. The price level in our area from under $200,000 (we have very affordable housing levels in McKinney, TX) has a supply of inventory of about 1 month. They go like hotcakes!
Buyers end up shedding tears from frustration. Making a full price offer with "clean seller beneficial terms" just is not enough. Homes top over the price range and reach heights that appraisers will moan over. Multiple offers mound up and agents send letters from their clients to the seller enclosing darling family photos, an attempt to tug at the heartstrings.
With the huge demand the home values from once stable levels are escalating - mostly at a rate of 7 to 8% a year (price level under $300,000). The fray to get a home began in late fall 2012 and it has been Christmas since, full of surprises and gifts to the sellers. Home values are on the rise - celebration! We have had little to no appreciation in our area since 2000 in our community - values have remained stable. We had a lot of new home construction that kept the preown market prices holding. This actually gave us protection during the 2008 downturn. This price level of home maintained value and did not go down. While most of the country was crying the blues Collin County Texas area was a poster child of example. We became the pulse of test for the nation. As economist have alluded - what we experience the other areas in our nation will follow.
Happy multiple offers. They area a challenge, a reward and a heartbreak!
As the nation looks to our area (Dallas-Ft. Worth) as a leading indicator of what is coming for other parts of the nation you should all be smiling soon!