Over the past couple months I have been seeing an increase of purchase contracts coming across my desk. I am getting more clients wanting to get pre-approved and looking at homes ready to putt in offers. From my agents I am hearing how hard it is to find a good property and when they are found there are multiple offers on the table.
This is great news having more buyers but with the influx of buyers and lack of inventory it is causing bidding wars! Most sellers would think this is a great thing and it brings the question then why aren’t more people who have been wanting to sell their home not putting them on the market now? Wouldn’t this be the best time knowing there are more buyers than property? Well not necessarily and there are two answers for this, one is that most sellers owe more than what their home is worth, second, they are holding off for the anticipation of higher prices down the road.
Now with the lack of inventory and the bidding wars happening it is causing conflict because many of these buyers are putting offers in the day a home goes on the market and then losing out by someone who has out bid them. Real-estate agents are saying they are writing more offers but not having enough closings. The deals are falling apart because even though a bid is over the listing price it doesn’t mean that the home will appraise. So appraisals are not supporting the value of the increased purchase price. Not only with appraisal values falling short we are also running across buyers whom are not qualified to buy the home at a higher purchase price.
I can’t stress enough how critical it is to get pre-approved before looking at homes. Click here if you would like to complete on online loan application. And please feel free to call or email me if you have any questions.
If you would like to read more on the bidding wars click here.
Summit Home Mortgage
303-779-0591 ext. 101