Well, these days you hardly get the ‘flip’ in before the house is grabbed in mid-air. ‘Toss’ is probably a better word. How about “Toss This House”. My goodness, there’s a mad rush for ‘existing’ homes all over the US, with each available home having many, many interested buyers. Multiple offers is the norm. I hate it.
Yep, I’m a real estate agent, but I also appreciate a fair, balanced market. This market supremely favors the wealthier buyers, and my first time buyers are literally shoved aside or intimidated out of even trying. My heart goes out to the excited buyers who have saved and worked on credit score, diligently trying to get out of the rental lifestyle into homeownership. I see, time after time, their optimism turning into disappointment, as their ability to offer above lists price and bring the difference to closing, kicks them out of the running. OR, they are reduced to shopping through the inventory of homes where you can see the ground through the floor, or where outdoor carpet has been flung onto the floor inside. It is ridiculous.
Here’s why this bothers me…in PART…why this bothers me. One day, and you know I am right, people who pay 10, 15, 20 thousand over list price are going to get stuck with that house when the market falls. Think about this: If you offer more than the appraised value right out of the gate and THEN the market falls (or crashes), then you need to sell? Oh boy. You will have to bring that extra you paid out BACK to the table again as the seller, and possibly more, just to be able to sell a home you now have to list BELOW market value. I’ve seen this happen; I lived through a market crash with people who HAD to sell for jobs or family reasons, cashing in tens of thousands of 401K dollars, just to get rid of their home. I understand this is a free market and all of that, and I am a capitalist. But I have also “lived in the future” to a great extent. I tend to view my life as today + ten years out. I’ve been pretty doggone accurate too. And I’ve found that things tend to work out somehow. But the number of home being sold above appraised value deeply concerns me. I’m going to be the one going to listing appointments and giving bad news time after time. I’ve done it; I don’t like it.
Anyway, I started out talking about my young buyers or firsts time buyers and how hard it is to see them getting cut from the running. I hate it and I don’t think it’s fair. So. House tossers. How about this? How about you try buying some smaller homes, putting fewer bells and whistles in them, and giving the entry level buyers a doggone chance?? Spend less on the downstroke…buy TWO! Make them cute and comfortable, safe and warm, and sell them at a price the entry level buyers can afford. And sell them to a owner, not an investor, and give them a chance. YOU had one; why not pay back the opportunity? I say you can spend less up front and still make a profit. In other words, my little first time buyers can live without granite and top of the line appliances. They know they can upgrade that stuff later.
Anybody? Anybody? It is not all about the money, is what I am saying. Man can’t live by bread alone. That’s not me; that came from somewhere else.