Seems like we are still in the “CRAZY MARKET”
For agents who were licensed in the past year, this may seem normal: you must show a new listing in the first day or two, write up an AOS with an offer over the listed price, and if your buyers don’t have 20% down or are getting an FHA mortgage and they want inspections…seems like there is not much hope that they will win the bid. Even the conventional 80% loan-tovalue buyers are getting blown away by cash offers.
Is this normal? I don’t really like the phrase “the new normal” when used in most situations. I’m thinking that the 2020 Crazy Market will not stay with us forever, but it is a heckuva ride. Buyers must be patient and not get disillusioned or demoralized. Agents have to be on top of every new listing and often must write one agreement after the next until one is accepted, sometimes working 60-80 hours a week, or more. (And going through reams of paper…14-page agreements, 10-page sellers disclosures, lead paint, pre-approvals, closing costs, holy mackerel!) Appraisers are stressed by being overworked and having to find comps and making adjustments for this market with higher prices. Title companies are also pushed to the limit with searches, getting payoffs, and the other hundreds of things that they have to do, and then title officers running from one table to the next, inside and outside, wearing masks. And the lenders...oh my, the lenders! They prepare good faith estimates and pre-qual/pre-approval letters all day long! And for all of us, 30-day settlements, when there’s a mortgage involved, are a thing of the past. For now.
Nope, it’s not normal. I received an email from Ed Tobias (Toby). He has been a Realtor long enough to know that this market is nuts! He wrote, “Lancaster Avenue row home, mixed use, $90,000 list price. Got 12 showings in 48 hours with 2 offers. One for $84,000 (cash) and settle in 21 days. The other for $97,000 with 80% financing and 60-day closing. Both were no inspections and we went back to each for ‘highest and best’ to get final numbers. Seller took the cash offer. It’s crazy out there.” It’s like being in the wild west of real estate. We will all need extended vacations and maybe a few visits to a therapist after things settle down…whenever that is.
Sort of makes me wish for the good old days, when we only had to worry about things like peacocks and fleas. Here are two Realtor Life Adventures from many years ago:
Wink Dietrich has had so many real estate adventures, and has heard so many, that she could tell us stories leaving us spellbound for months. Here are two involving Jennifer Dinatally. Jennifer had recently purchased a home herself, and under “items remaining”, there should have been a mention of two wild peacocks. These were huge birds, and she named them Neville and Oslo. They would sleep in her tree and would visit every day. “They’re really cool,” Jennifer said, “but I wish they’d stop pooping on my front porch.”
Jennifer also had a flea story. She handled a lot of foreclosures, and this house was in the city. She wanted to have a codes inspection so she met the inspector at the property, accompanying him into the house. As she was leaving, she noticed on her clothes (white pants, light top) these little black flecks “and they were jumping all over!” They were up to her neck! So, she said she stripped to whatever could be considered decent and there she was, “spinning in circles on Cotton Street, while the Codes Inspector sprayed me with flea spray. I didn’t even care how it looked. I have this bug phobia…”
Would love to hear about your stories – about this incredible market, and also about weird stuff that happened during showings or settlements, etc. I hope we’re not all so swamped with work that we can’t take time to enjoy the adventures that go with this crazy profession.
Be safe, and hang on.
Lorrayne