Bidding Wars Are Back!
We can only speak for the Southern New Jersey market, but from how it appears, bidding wars are finally back! After many years in a slower market, it now looks as though more buyers are coming out and placing bids on properties. Many industry experts speculate that this will be the year where real estate starts to rise again.
Buyers are Not Afraid to Fight for their “dream home”
More recently, buyers who have been dragging their feet are more likely to be putting offers on homes now. In addition, they are not afraid of getting in a bidding war! For many homes for sale in South Jersey, quite a few have multiple offers on them. For instance, in the last 30 days, we had 2 listings (one in Cherry Hill and one in Mount Laurel) where we had 4-6 offers in a matter of a couple of weeks.
To most real estate professionals, it can be assumed that we are moving back into a more normal market, and what an exciting time it is. With all the pricing, financing and options that are out there, it is nice to start seeing the market get busier and more importantly buyers fighting for properties!
The thrill of the fight
We share this next example because it is a good one. Today, we took out a family to see a home they had to see (even on a holiday weekend). Let me start by saying, this particular buyer was very specific in what they were looking for. They had explained that they needed 4 Bedrooms, 2.5 Baths and a basement in Mount Laurel only when they had started working with me. Within a matter of weeks, they found a home, that did not meet any of the “must have” features that explained before. In fact, they have even decide to travel outside of Mount Laurel.
In the one home I showed them today, it was without a basement (as required) and not located in Mount Laurel (another requirement). In addition, the home needed a little work, and the 2.5 bathrooms had showers only, which would be difficult with 3 children under the age of 7. However, the second I explained to my client that there were already 4 offers in, this only made them want the home more!
We went through the home, and there were lots of things that came up that didn’t meet the requirements, but just knowing that there were multiple offers on the property made this home that much more desirable. The buyer decided to place an offer within hours of leaving the home. I truly believe this was because there were already 4 offers on those home, and this made it seem like it was really great. Needless to say, we are offering higher then asking price.
The point of this story is to demonstrate, that when someone falls in love, all else goes out the window! All the requirements that once seemed important are no longer as relevant, and they are blinded by any small issue. Nothing will get in the way of a motivated buyer!