Trying to buy a home in the hardest buyers’ market
Continuing the conversation… what it’s like trying to buy a home in the hardest buyers’ market we’ve ever seen. Where the inventory is miniscule. And the competition is fierce. And where the vague notion of “market value” is an increasingly fluid concept that seems to change by the hour, by the day and by the week!
To all those intrepid folks who are hunting for a home right now, I feel your pain. Diving into the deep-end of this crazy market isn’t easy. And trying to make sense out of the mosh-pit of multiple-offers is a true “Nietzschean” task. Hopefully the process won’t kill you. And hopefully you’ll come out of this trial-by-fire stronger and with a new home to show for it all.
Here’s a short recap of one couple’s recent buying journey: Bob and Deb started looking four months ago in their preferred price range of $950,000 to $1.1million. They’ve only actually seen three houses in person since they started because there just haven’t been that many that were a fit.
They wrote an offer on the first one for fifty thousand above list price. There were 30 offers and they didn’t even get a counter offer. On the second one, they went in at $100k over list but there were sixteen offers and they lost out to someone who offered all cash and was willing to release all their contingencies up front.
On the third place, the seller received a preemptive offer that they accepted before the offer date arrived, so Bob and Deb were never actually able to submit their offer. They were going to look at another new listing last week but they couldn’t get an appointment to see it in time, before the offer date arrived. It was scheduled out in half hour increments for six full days until the seller received fifteen offers.
So the journey continues… How do people prepare for this kind of challenge? Especially when it involves buying one of the largest assets they’ll ever own, writing the biggest check they’ve ever written, assuming the largest pile of debt they’ve ever signed on for, all to secure what will also become the centering place for their lives?
Well-intentioned buyers are being challenged on levels they didn’t even know existed until now. They need endurance, toughness, patience and the ability to bounce back from disappointment. And they have to be able to stay balanced even when the roller coaster takes them through more ups and downs than Mr. Toad’s Wild Ride.
In short, they have to have a high emotional IQ. To be continued…