Real Estate Disruptor
There is a major disruptive force for premium homes at play in our Outer Banks Real Estate Market! Real Estate has a mechanism much like any other business. It has a system of checks and balances which allow for reasonable growth and expectation of a property’s value. The laws of supply and demand play a big part in the market value of a home as well as prior sales for appraisal and lender requirements in our local market and across the nation. There are a few outside economic events that we have seen in the past that can have a big effect on the market value, a stock market crash, a banking crisis to mention a few. Who would have thought a pandemic would lead to a nationwide real estate boom? This event is causing our system of checks and balances to be challenged as values increase at breakneck speed.
The external force that is at play in our market that is throwing our whole mechanism out the window is the cash buyers. A cash buyer can be the major disruptor in our process of selling real estate. They swoop in and win the bidding war on any house by offering way more than the listing price with no contingencies i.e., appraisal value, lending requirements, inspections and no repairs. This is having a huge effect on property values! I recently listed a beautiful home on the water for $1.99M. In 48 hours, we had multiple offers. When it was all finished the house sold to a cash buyer who paid $2.1M all cash, no contingencies and closed in 30 days. The sale set a new high for that type of home in our market. The highest sale prior to that one had been $1.65M just months before. That is just one example of a cash buyer disrupting our market. If you would like strategies how to successfully compete with the cash buyers give me a call at 252-202-1043.