House hunting this spring? Good luck!!
The Memphis housing market is hot!
The competition between buyers is fierce. The reason? Inventory is low. A housing shortage has homes selling within days or even hours after hitting the market.
It’s not uncommon for bidding wars to end with homes being sold thousands of dollars over the list price.
Potential buyers see the “for sale” signs, look online. then quickly learn that hunt for the perfect house isn’t easy.
“I really want to find a house. I’m getting disappointed by the process. I hope it ends soon. I hope it does,” said Karen Dzubuk, house hunter.
Dzubuk and her partner Osvaldo Lungo know firsthand how difficult the process can be.
They have looked at house after house. They have put in one bid after another and they’ve lost time and time again,“it is a roller coaster of emotions,” said Dzubuk.
“It’s very competitive very low inventory right now which is creating a problem for owner occupants and first-time buyers who are trying to get into a home,” said Jolynna McCune, realtor.
McKune says homes under $200,000 are most in demand, which is Dzubuk and Lungo want to spend. McCune says traditional buyers are also competing with investors who can pay cash, “when there are multiple offers and some of them are cash that puts your financed buyers at a disadvantage. It hurts them a lot.”
In a matter of weeks, Lungo and Dzubek were out-bid on five houses, even when they offered $20,000 over list price on an East Memphis home.
They also tried buying a home in Cordova home. After just 2 days on the market, it had 27 showings and a bidding war with 11 offers.
“In many cases there is multiple offers when a new home comes on the market, there can be a frenzy for these homes,” said McCune.
According to the latest numbers, home sales are up 14 % from a year ago.
The average sale price is up almost 6 percent to almost $177,000.
but there are 1500 fewer homes for sale compared to two years ago.
“In the past 20 years we’ve had lots of inventory from either builders or during the recession from bank sales and we don’t have that strong push right now, “said Lee McWaters, realtor.
McWaters is the incoming president for the Memphis Area Realtors Association.
McWaters said the demand is so great in one recent bidding war had an East Memphis home selling for $75,000 over asking price,” We’ve seen a lot of bizarre lately.”
-making your best offer first.
-making your offer as clean as possible with few special requests.
And if you ask for the seller to pay closing costs, a home warranty, or appraisal and inspection contingencies don’t be surprised if they choose a different buyer.
As for Lungo and Dzubuk, the sixth time was the charm, they finally got a contract on a house in Cordova.
Are you ready for this? They put in their bid sight unseen!!
“He was telling me this morning ‘you’re crazy. you just bought a house and never walked into the house.’ I said, ‘I guess so,” said Dzubuk.
Dzubuk’ s advice to house hunters, remain patient. “We hit the jackpot we did.”
