What a week it has been! We brokered a multiple offer situation with nearly a dozen buyers all vying to call our listing theirs. People were creative in order to get this gorgeous home- dropping financial and inspection contingencies and tailoring their offer to the needs of the seller. It's what you have to do to get the house you want in the Metro West area- the story is played out all over the country.
This is what negotiating 11 offers looks like!
In states where they have a "due diligence" payment with an offer such as in Florida and North Carolina, buyers are offering the sellers sometimes incredible money to secure a house.. If you are not familiar with this process, this is nonrefundable cash given directly to the seller, that the seller keeps even if you the buyer doesn't follow through with the sale after the offer is accepted. On a $400K house some will give $75,000, just to get the property. This money helps ensure that the buyer will show up to the closing since there is a substantial amount of hard earned cash at stake. In Massachusetts all the deposits trading hands stays in an escrow account until the closing and the seller doesn't hold anything until the end. The binder that accompanies an offer has gone up in price in Massachusetts. Typically, it was a thousand dollars before the pandemic, now five to ten thousand dollars is a more common amount in a competitive situation.
While existing home sales continue to climb, permits being pulled for new builds has gone down. As we have been discussing, the supply chain is a major problem for builders and, in turn, homeowners. Contractors are even delaying closings on new houses for months because they just can't get the material they need to finish a job. Kitchen cabinets that were a wait time of 6 weeks are now at least 10 weeks out from the order to delivery dates; getting a part to fix your fridge or freezer is weeks out, and window blinds I ordered in July aren't expected to arrive until mid-October. According to a study out of Harvard University, home renovations are slowing down as a result of these long delays. Plus, in some cases people are putting out so much money to purchase a house, they don't have the cash to renovate right away and they have to put off project. Of course builders are having a hard time finding help as well which also slows them down.
Outside of houses, we are having fun as a family watching the Olympics and hope you are too. As the mother of a serious gymnast, I see the pressure these athletes take on and the commitment it takes to get to the top. From Simone to the rest of the team, we are continuously inspired by all the competitors. The Olympics once again shows how hard work, determination, and focus can get you where you want to be.
Have a good few weeks. I am taking a summer vacation next week and look forward to connecting after!!