Remember the good old days (2005)? I most certainly do. When I would write offers with escalation clauses only to find out that there were multiple offers and my clients offer, although generous, wasn’t enough to win the bid.
Well, it’s back! Of the last 4 offers I have written, all of them were involved in some type of bidding war. There was only one that the seller, a bank, asked for highest and best. I didn’t win that one, but I did win one of the other 3. Just to think that only 6 short months ago, homes would sit on the market just waiting for a low-ball.
I guess it would be fair to say also, this time it’s different. This time it’s not like the frenzied unrealistic offers that we saw in the good old days, where there were too many buyers, qualified or unqualified trying to buy the same house. This time it’s due to a supply shortage if you can believe it. Only a year ago you could pick from an inventory that was an investors candy store. Not this year. The prices are going up, the inventory is going down, and the condition of the homes that are left over is pathetic on a good day. I have to say, I am sure glad I picked up the 9 properties I bought the last 3 years. Because if I wanted to pick up that kind of inventory now, with that kind of cashflow, it would be impossible.
This leads me to believe only one thing. The bottom of the market has come and gone. Yesterday I was telling Kevin, my friend, customer, and seasoned investor, that the market is on it’s way back up and if he wants to get some more good cash flowing properties he better give me the go ahead and find him something.
Larry Cutting, Designated Broker, American Classic Homes Real Estate
Company Website: http://www.AmericanClassicHomes.biz
Personal Website: http://www.LarryCutting.com
Larry Cutting is a professional real estate broker and owner of American Classic Homes Real Estate specializing in Residential Real Estate for buyers and sellers in South King County’s most popular neighborhoods such as Renton, Newcastle, Bellevue, Seattle, Tukwila, Burien, Kent, Auburn, Covington, Maple Valley, SeaTac, Des Moines, Normandy Park, Federal Way, and Fairwood.