In August, our Chicago-area agents presented 30% more offers on homes for sale than they did in July. With more bids, there’s increased competition and homes go under contract quicker. Mark Reitman, one of the top buyers’ agents in the Chicago area, is seeing well-priced homes sell quickly on the North Shore:
Right now, homes that are priced right aren’t staying on the market very long. A lot of sellers need to sell and have priced their homes accordingly. We’re seeing homes on the North Shore go under contract in less than a week. One of my clients was ready to bid on three different homes in the $600,000 range, but all went under contract before we could submit our offer.
Price Gap Has Narrowed
This increase in buyer activity has a lot to do with low mortgage interest rates and the $8,000 federal tax credit. Mark points out another reason: there’s less of a gap between what sellers think their homes are worth and what buyers are willing to pay:
- Sellers: Have much better understanding of market values and they’re pricing homes better
- Buyers: Are learning the market is no longer dropping like a rock and they aren’t going to get a nice house with a low ball offer
3 Tips For Buyers
Mark has three tips for buyers:
- Determine your maximum price: Know how high you can go before you bid so you don’t have to figure this out during negotiations
- Know what’s for sale: Be ready to make an offer as soon as you see something you like
- Lead with your best offer: Show sellers that you’re a serious buyer from the start
For more numbers, download the spreadsheet with the data on what happened in August.
Where are you seeing homes with multiple offers?