Flash Sales

My friend Tina over at the Cromford Report was telling me about “flash sales” and how they change with a changing market.

Have you ever been out looking for homes just to be shocked that the home you identify is under contract within 24 hours? It happens all the time. But it happens more in a market that has shifted from a buyer’s market to a seller’s market. There are fewer homes in a seller’s market (in most cases) and buyer have to jump quickly to get what they want.

What is most amazing to watch is when the home that goes in a heartbeat is one that clearly needs work or one that has some serious deferred maintenance issues. Or, even crazier, when a really beat-up home has been sitting on the market for 5 months and then, all of the sudden, three offers come in.

Why is this? Well, its because the supply at that point has shrunk so much that buyers have little choice but to buy that home which needs all the repairs. We’ve seen this a lot in the sub-$200k range these days.

To put is more diplomatically, as Tina does, “As inventory declines sharply, properties that were once continually rejected due to price or condition are found attractive again in the absence of choice.”

Most interestingly, according to Tina, is to see how often homes in the higher prices go in flash sales. Yep, it still happens. See the chart, below.

So, how to you avoid this problem? I tell my clients to start looking before you think you need to. We usually get together as much as 6 months before you think you need to look. We will consider the market trends, your personal situation and then we set up a strategy. If we see some market shifting coming along (which we properly predicted this year), then we will make adjustments to your plans.

We don’t want you getting suck with too few choices. So, call me at 602-456-9388 and we can build your strategy together.