Are you gambling with your dream house?
The spring real estate market is well underway here in Charlotte, NC, and an amazing phenomenon is occurring - we are seeing LOTS of multiple offers on homes, and unfortunately, many buyers are getting out-bid and losing their dream houses!
I wouldn't believe it if my own clients hadn't experienced this disappointment first hand. I have one client who has lost out on TWO homes she loved because she was out-bid by another buyer in a multiple offer situation. One of her offers was a full-price offer! I have two other buyers who have been involved in multiple offer bidding wars in Charlotte NC over the last two months - one who was on the winning side and one who was on the losing side.
Folks, it's not fun to see the disappointment on a buyer's face when she finds the right home, writes up a fair offer, only to be out-bid by another buyer. So what's going on here, aren't we supposed to be in a real estate slump?
I have several theories on why we are seeing multiple offers on homes for sale in Charlotte NC:
- Real estate is LOCAL, LOCAL, LOCAL! The dire news about continued falling prices may be true in some areas, but not all neighborhoods. Buyers should be working with an experienced Realtor who can provide a detailed comparative market analysis to arrive at a fair market value. The days of "steals" is over in many desirable Charlotte neighborhoods. If your Realtor advises that a home is under-valued, take that information into consideration!
- Pent-up demand! Buyers seem to be coming out the woodwork to buy a great home for sale in Charlotte, NC! After sitting on the sidelines waiting for the "bottom" of the market to hit, many buyers are realizing that we may have already passed the bottom.
- Rising interest rates - there seems to be more volatility in the interest rates lately. After average rates creeped over 4% last week, many buyers started worrying that they would lose buying power if rates continued to rise. A 1% increase in mortgage rates equals a 10% loss in buying power.
- Realistic sellers - Don't forget there's pent up demand among sellers, too! Many sellers who wanted to "ride out the market" and wait for it to rebound are tired of waiting! They want to get in on the action too - to buy a home at a great value at today's lower prices. But they have to sell first, and now they get it - they have to have their home in tip-top condition and price their home competitively if they want to sell. And many of them are doing just that!