Times have changed. The common thought among buyers over the past few years has been to make lowball offers on short sales, REO’s, foreclosures and even regular resales to see what kind of a “deal” they can get. Today, that strategy doesn’t work. Not only does the strategy no longer work, it can even hurt you. With less and less inventory on the market, buyers are flocking to the same properties. Some properties are seeing multiple offers, even bidding wars, reminiscent of the market heights of 2006.
We’ve seen inventory levels in the Palm Beach market place recently return to a “normal” level of approximately 6 months of available inventory. With fewer homes, townhomes and condominiums to choose from, buyers are flocking to the same high quality/best value properties. Buyers wanting to get a deal with the lowball mentality have found themselves in the bidding pool of other buyers, usually surrounded by higher priced offers. Given this, most sellers won’t even bother making a counter offer to the lower offers received, regardless of cash or financing.
What’s the moral of the story here? Real Estate is a location specific business and the market is bouncing back from the bottom in this location. There are more buyers out there today than in years past. Bank owned and short sale inventory has mostly been cleaned up.
Our advice: find a property you want to buy (preferably with Palm Beach Condo Company representing you) and make a strong offer. Chances are very high that you’ll be happy with your purchase 5 years from now.