Unprecedented times for sellers. Lake homes are priced at astronomical prices. Every seller is looking to bank a big profit. That's fine if you have a buyer with lots of cash. Banks won't loan money beyond what the house gets appraised at, and that often is a LOT lower than the list price. Either the buyer makes up the difference or the seller sells at the lower price. How do I know ? I'm a Realtor. If homes are priced right, they are selling in hours with multiple offers now. I emphasize if priced right. And unless your Realtor is also a licensed appraiser, they can only offer "price opinions".
That might be our next move! Hand written letters. We called our realtor last June to look at 3 houses on our lake that had been on the market for close to 1 year. All three had written offers. Since then only 2 have sold for less than asking. Everything else is in a bidding war and sold within hours. We've bid on 2, over asking on both. The first one we were outbid by $25k. We bid $30k over on the second one and were outbid by two buyers. It's crazy. Oh and prices have increased by $150k. So there's that.
Best Approach IME - Have your Realtor ready with pre-written offers, include a nice short cover letter and include statement that you have no issues with making your own repairs, proof of down payment, letter from lender that you are prequalified and can close in 30 days. He then sends to you immediately for any home that appears to meet your requirements for signature and submits sight unseen. It's the only way I have gotten clients into homes here in LA, the market is always competitive. Then during first inspection, if they don't like they cancel (which is surprisingly rare). In my experience.... Best.
Unprecedented times for sellers. Lake homes are priced at astronomical prices. Every seller is looking to bank a big profit. That's fine if you have a buyer with lots of cash. Banks won't loan money beyond what the house gets appraised at, and that often is a LOT lower than the list price. Either the buyer makes up the difference or the seller sells at the lower price. How do I know ? I'm a Realtor. If homes are priced right, they are selling in hours with multiple offers now. I emphasize if priced right. And unless your Realtor is also a licensed appraiser, they can only offer "price opinions".
Appraisers don’t even value houses. They just protect the bank so they don’t lend more than a asset is worth. I had required proof of additional funds from the buyers of the two houses I sold last year, in case they didn’t appraise for contract price.
Unprecedented times for sellers. Lake homes are priced at astronomical prices. Every seller is looking to bank a big profit. That's fine if you have a buyer with lots of cash. Banks won't loan money beyond what the house gets appraised at, and that often is a LOT lower than the list price. Either the buyer makes up the difference or the seller sells at the lower price. How do I know ? I'm a Realtor. If homes are priced right, they are selling in hours with multiple offers now. I emphasize if priced right. And unless your Realtor is also a licensed appraiser, they can only offer "price opinions".
This also reminds me of the housing boom where home prices were inflated and people buying in at the peak only to find themselves underwater when the market corrected itself.
It's, as always, impossible to tell if (or rather, when) the market will correct. Some have suggested it may be longer than you might think. There are a lot of older folks staying longer in their homes, creating lower inventory for the younger generations that are and will be entering the housing market.
This also reminds me of the housing boom where home prices were inflated and people buying in at the peak only to find themselves underwater when the market corrected itself.
