Bidding Wars Break Out on Central Florida Homes

As stated by FAR (the Florida Association of Realtors), bidding wars are breaking out on homes listed $200,000 and under. This comes as no surprise, as people embrace the $8000 tax credit, as well as the current low interest rates on homes and the incredibly low prices!

Why are bidding wars happening? FAR states that "The race for properties is reminiscent of the boom years from 2000 to 2005, when multiple offers on all types of dwellings helped push prices to record highs.Back then, a dearth of properties for sale had buyers rushing to scoop up anything they could find, for fear that prices would keep rising. Now, frustrated with a bloated inventory of foreclosed homes in disrepair, buyers go to great lengths when they spot a house or condo in pristine condition."

I have seen this happen recently! Out of town buyers had called to see one of our listings. The home had just been listed and was in pristine condition. They immediately fell in love with the home. Listed at $185,000, we offered $188,000 to beat out the other buyers that had submitted offers. The house appraised for $16,000 less because of the bank owned properties in the area and the buyers decided to proceed with the closing. They stated to me that "We can't build this house for less that what we are offering and we still think it's a good deal." I was happy to help bring up the values in the neighborhood!

While many homes today are gutted by the sellers in foreclosure situations, buyers are willing to pay more for homes that need little to no extra work. People are busy and many don't want to bother with the sweat equity involved in fixing up a home.

It still stands true...you must shine and polish your home if you want to get top dollar for your property. Need to know what to do? Contact me for a checklist on how to prepare your home for sale!