Three Expectations You Need to Manage in Today’s Real Estate Market
This year I’ve been focusing more on listing business than buying business and I’m happy about that because the experience for buyers has been dreadful. For over a year, prices have not only climbed northbound, but low inventories and over-asking selling prices have started to really p—s people off. Wicked times are upon us.
If you are planning to enter the real estate game on the buying side in South Georgian Bay RIGHT NOW, here is a quick overview of three expectations you need to manage (and hopefully accept):
Prices are NOT going down
Why would they? They have been inflated to record highs due to “high demand, low inventory” activity and buyers seem to think they will eventually get back to where they were in 2019. Real estate doesn’t work that way, not in the current climate. As long as the “high-low” dynamic hangs in the balance, the prices you see today may level off but will not drop. But watch out, this same dynamic could put a rocket booster under list prices come 2022 if factors such as politics and economics are pulled into the mix.
Sellers are still holding offers and triggering bidding competition
While the level of “offer dates” today is nothing like it was this past summer, buyers are still faced with the possibility of going into a bidding war with at least one or two other buyers. I am writing this post just a week after taking out a buyer in Tiny Township: one place was holding offers (with pre-emptives being considered) and the other two had 24 hour irrevocable periods. On one, the buyer low-balled with a pre-emptive offer that resulted in a rejection and then did not offer on the other two (although motivation was there), both of which ended up getting accepted offers the next day. You see? If the buyer had offered, there would have been a two-buyer showdown as a result of the 24 hour irrevocable period.
Are you ready to pay the asking price at minimum?
Please don’t lowball; please don’t think that because prices are inflated that you have an opportunity to buy a property for THAT much less; and please be aware that there are OTHER buyers out there more motivated than you. I could go on but you catch my drift: if a property is priced right as per current market values, you should be prepared to pay the asking price at minimum. I repeat: be prepared. The goal is to try to nab it for less and depending on the type of property, you just might; but if the place puts the warm and fuzzies into you, it will do the same for others — possibly several others. So don’t waste time and get that offer in. If you pay over the asking price, hopefully it won’t be for an amount that can’t be justified with some renovations and overall market appreciation within the next five years.
Still doubtful?
I’d be glad to put some market reports together so you can compare new listings vs sales, average sales price, days on market, and percentage of list price received. The numbers tell the story.
As my childhood friend G.I Joe once said, “Now you know. And knowing is half the battle.” But it always helps to get additional feedback from a Realtor servicing your area. If you’re considering a real estate investment in South Georgian Bay, the buying challenges may await you, but we’re here to help you get through it.