Have you ever noticed this natural law? Whenever I order coffee to go there is about a 90% chance that the hole in the top will line up perfectly with the seam in the cup. Hence the stains on my dress shirt. I would expect 10% maybe but why 90%? It is a little-known law of nature.
Have you ever noticed that when you feel it is safe to buy real estate again, so does everybody else? It must be a law of nature. Actually, it is said that fear of loss is the greatest motivator. During the summer of 2011 I, Ron Buck Realtor and Owner of JonRon Real Estate, was showing fantastic homes to prospective buyers and begging them to buy. There was very little competition and decent selection. Most buyers were afraid of a possible 5% drop in the market. Now, after the “business channel” proclaims a bottom to the real estate market things are quite different. When a super-nice property comes on the market today we see utter chaos.
This week I, Ron Buck, represented a buyer making an offer on a home in the $600,000 range. Believe it or not, there were 16 offers in 2 days. The listing agent expected maybe three and I guessed five or six. It must be a law. (A tip: Hire the best agent you can if you are a buyer right now.)
Here is another law you will deal with now whether you like it or not. There are no appraisal comps.
Don’t be angry, just remember this principle:
- Appraisers always deal with history.
- Realtors® always deal with the near future.
It is a tough thing for an appraiser to find comparable sales in an increasing market but even tougher to claim a purchase price is not “market value” when there are a dozen offers to support the price. When we Realtors list properties we are trying to guess the value of a property now and in the next 90 days.
What is your new natural law?