The next 12 calendar days will be the most active buyer feeding frenzy in the past 2 years. So if you have a deal right now, get it on the market today….I'm talking right now, before you finish reading this! The $8000 tax credit expires on November 30th and therefore every buyer who has been on the fence for the past six months is being forced to make a home buying decision in the next 12 days. Why 12? Because it usually takes anywhere from 3 weeks to a month or more for most people to get their loan and close on the property. Since today is Tues, Oct 27th, buyers have basically this week and next week to make a buying decision or they lose the $8000 tax credit.
According to the National Association of Realtors (NAR), sales of existing homes has reached its highest levels in 2 years this month. Case in point, I have a deal that had no offers for weeks and then this weekend I had three offers come in. With this competition of buyers, I was able to get my full asking price (that's unheard of in this market, ask any listing agent out there). On the weekly Monday mentoring call I conducted yesterday with my expert level students, I found that they had the exact same experience over the weekend. Multiple offer situations galore! In talking with a few brokers here in Nashville yesterday, they said that buyer clients that had been “on the board” for months all started calling them these past few days to make a buying move this week. Buyer's agents are running ragged right now trying to keep up with the surge of business.
What's this mean to you? The next few days is going to make investors who have deals on the market an absolute fortune. When you have this massive frenzy of buyers all competing at the same time, you can get your asking price, and many times, more than the list price. Plus, the buyers are less picky so if some issues surface from the inspection, they are more likely to press forward with the purchase without asking for the repairs to be completed.
For our students, these next few days is a dream come true. They are able to make huge amounts of money in a month that is historically slow in real estate. Usually, come November, buyers slow down as they get pre-occupied with the holidays. But not this year. November will prove to be the most active real estate month in years.
This just in. Literally, right as I am writing this, a student, Philip Nguyen, has just sent me a message that he has 11 offers on his deal in Santa Clara County, CA from the past three days. His list price was $240,000 but he already has offers all the way up to $270,000. His favorite is an offer for $255,000, all cash, closing in three weeks and 3% non-refundable earnest money. It doesn't get any better than that! His total profit, after all expenses, commissions and fees, should net just over $50,000. And good for him, just in time for Christmas so he can get his family the gifts he always wanted to give them and have the freedom to finally spend the holidays with his entire family (as opposed to being stuck at home again this year, unable to re-unite with his loved ones because he couldn't afford the plane fare, hotel and rental car.)