Real Estate Blog - Appraise & Apprise - William R Hall, Alpha Valuations

I know it sure doesn't feel like it, but Spring officially began a few weeks back.  And with Spring, typically, comes home buying season.  However, this year feels a little different, doesn't it?  Maybe it has something to do with the unseasonably cool weather.   Maybe not.  But what I do know is that there is very little inventory for the prospective home buyer right now.  This is good news if you are selling your home, or thinking of selling.  Not so good news if you're out there looking.  Sellers certainly have all the leverage as indicated by the fact we're back in the days of multiple offers and non-contingent buyers.  What does this mean if you're looking for a new home?  It means be wary and be patient. 

Bidding wars can be troublesome.  First of all, you are almost certainly going to overpay for the property should you win the bidding process.  Which means there is very real possibility of the home not appraising out.  With the current lack of transaction velocity, it becomes more and more challenging to support the inflated price from an appraiser's point of view.  Secondly, the only one who wins a bidding war is the seller.  You know that feeling when you buy something you've been eyeing for a while and the next week it goes on sale?  Yeah, it's like that...only exponentially worse. And involving hundreds of thousands of dollars.  So be patient.  There will be another "dream home".  And I feel it.  I feel like we are on the brink of the buying season blowing up.  Especially after conversations with brokers on a daily basis.  Each has said they've been busy the past few weeks with current deals in the works and in the pipeline.  

So relax.  The weather will eventually reflect the calendar.  And your next home just might not have listed yet.  But it will.  Thank you and make it a great day!