Real estate is cyclical, and if you have been in the real estate business for any length of time, you come to realize you have a ringside seat for viewing some amazing financial trends.
I remember one of the sales we made at the very beginning of the most recent (and now dearly departed) boom.
It was a sweet little home at the foot of the hill, delightfully decorated by the owner, who was a professional artist. This was 2002. My partner, Bob and I listed it for $249,500; and a buyer's broker waltzed in the door with an offer of $295,000.
Overbidding the asking price had not yet become commonplace in our neighborhood, and I was floored. It seemed strange, creepy, and off-balance.
Then 2002 turned into 2003, then 2004, and 2004 turned into 2005, and frenzied overbidding with multiple offers became commonplace.
As the summer of 2006 rolled into fall, we started to hear rumours of collapsing lenders, but the experts assured us that everything was fine, we were just heading in for a soft landing.
In 2007, many homes in my neighborhood were still selling in the $700s. Today, I see some of those homes listed as short sales. Checking some of the others on Zillow, I see average prices in the mid or low 400s.
Please don't misunderstand!! I am not bemoaning the course of the last few years!
But I ~am~ reminiscing about particular homes we sold during those years. And that sweet little house, owned by the artist, the house that seemed to be the start of the boom in my practice, came to mind.
Incidentally Zillow now gives that little house a Zestimate of $438,000, so the buyer who made that original overbid -- he did OK.
So, Listing Agents: Do you remember the first time one of your listings received multiple offers? The first time one of your listings sold above asking price? What were your thoughts back then?
Buyer's Agents: Do you remember the first time you wrote an offer above asking price? The first time you represented a buyer in competing multiple offers? What were your thoughts back then?
I'd enjoy hearing stories from others of their first "boom" sale.
this is a lovely post, bringing back memories of the past few years. Not everything was doom and gloom, some buyers did alright and we have the future and more ups and downs to live through.
Hey, I just had a multiple offer experience yesterday so I am hopeful that we might see a bit of a resurgence in this again!
The "boom" here was more of a wave than boom, but it was in '05....homes selling at 98 to 100% of list within 30 days of listing....I personally do not remember doing multiple bids over list. Frankly, that is ok by me. This past 2 years is the first downtrend in values I have experienced in 25 years here in North Central Arkansas.
Paula, we are definitely seeing a resurgence in multiple offers and overbidding here, but now the subject property is more likely a short sale or foreclosure listed below 300, and the overbidding brings it up into the mid-300s.....
Around here, I believe most people continued to want to buy a home through out the ups and downs ,,,, but when the prices soared into the 600s and 700s, it was just simply impossible on the average person's/family's income.
Cheryl,
I do remember those days, It seems like yesterday... Great Post and Thank-You for sharing.
Semper-Fi
Eric Ristey
Cheryl: We all recall these years and like you I am so glad to find out they are doing ok now. These buyers must have really fallen in love with this home! Its a great honest post.
CJ, Congrats on your #1000th post! It's a good one and worthy of the distinction!
Being in the business for 26 years this year, I've seen a lot of cycles. This one is tough and different then the rest but this too shall pass.
Folks need to focus on a home being a place you need, despite the value. The value only comes into effect when you absolutely HAVE to sell. Even then with the market the way it is a loss here most likely will be compensated by a seller's lost when you purchase.
kk
Kristal,
Thank you! Funny thing about the number of posts: On the Public Blog Dashboard, my number of posts shows as 1,000
On my Personal Home Dashboard, my number of posts shows as 1,031
I've been in the business a long time, too, and I think I'll share some other recollections from previous ups and downs in the market, if my readers will indulge me.
You are right about this downturn being a bit worse than the last few.
As it says in one of my favorite real estate cartoons: "Dear Lord, please send one more Boom, and I promise not to piss it all away this time."
Cheryl - Here is a little tune that will help you with your reminiscing ..... listen while you write your answers to the comments. http://www.youtube.com/watch?v=lNVit7cesj8
I love that trip down memory lane! I remember when i thought the boom started...didn't get multiple offers but I got 2 listings and 2 offers in the same day! For the next 2 years I walked around in a daze with how busy I was!!! LOL