We sure are in a crazy market. Get this….I just had multiple offers on a listing. One was a first time homebuyer. The other was an investor. Can you guess whose offer was more? I would have guessed the buyer that was going to live there would have paid the most. Glad I didn’t bet, because it was the investor. Yeah, that is right. An investor paid RETAIL for a house he intends to rent out. He paid exactly what I told the sellers to expect to get out of their house.
I’ve spent a lot of time advising people to make wise real estate decisions. For example, I usually tell people not to buy a house that backs up to the interstate or another busy road. Well, I had a listing that was beautiful inside, but it backed right up to the interstate. We sold it the first day on the market. Then that buyer defaulted on the contract. I put it back on the market and by the weekend we had multiple offers on it. WOW!
One of the things I always said in the slow market was something like this: “In a hot market, every house sells well.” That is exactly what we are seeing right now. My fear is that a lot of buyers are making poor choices today just as they did back in 2003-2005 when the market was so hot that everything sold quickly and for top dollar.
I doubt that we will ever see the market drop like we did several years ago, but it will have it’s ups and downs just like it always has. Before you pull the trigger on any real estate purchase, think about your exit plan. I spent a lot of 2008-2011 selling houses for people who made poor choices with other realtors in 2003-2005.