Wednesday, February 24, 2021

Buyers, Read This:  Multiple Offer Madness

An Interesting Email Thread

And vital for today's buyers to understand.

These are actual emails that I received from fellow North Carolina Brokers-in-Charge.

Dates of exchange:  Monday, 22 Feb. 2021 – Thursday, 25 Feb. 2021

Format slightly edited for readability.  And to make it easier to read, I am going to reverse the order.  So you can read top to bottom...

Monday, 22 February 2021, 8:31 PM

RE:  Multiple Offer Madness

2021 is a bit wild so far. 

The top numbers I've seen this year so far are 60 offers on one property and the most I've seen over list price is $100,000.

What are you seeing out there?  How are you managing?

Monday, 22 February 2021, 8:37 PM

I thought 37 offers and $56,000 over list was nuts for this area.  When I schedule a hot property, I’m looking at the blackout on Showing time as a gauge of how hot it is showing and the potential of offers that will be submitted.

Monday, 22 February 2021, 8:43 PM

Ah, thanks for the reply.  Those numbers I quoted are for the Raleigh market.  I just realized I don't have my main signature on this email to show that. 

We do the same with showing time.  The requirement for non-overlapping showings has been helpful in a way in that it forces the schedule to blackout the appointments already taken, and you can generally see how many showings the property is getting, just like you said.

Monday, 22 February 2021, 11:58 PM

So here's the thing...we have to take some responsibility here for this madness.  Oh sure, we want to get our clients the best price as selling agents, and as buyer's agents we want to ensure that our client gets the house, but what will happen when this crazy bubble burst, when interest rates go up, and people begin to realize that they are locked into a home that they bought in a state of panic.  If home prices and appraisals are not in line with what someone has paid for their home, when and if they are upside down in their mortgage, who are they going to blame?  You know who!!! 

I stood in a home this past weekend that went on the market Saturday with the limit of 15 minutes to show it.  The listing agent provided the wrong lock box information and it took us 10 minutes to straighten it out with Showing Time.  The listing agent noted that all offers had to be in by 8 PM that night.  My clients looked like two deer caught in headlights.  They had literally 5 minutes to decide if they wanted to buy this home for which they would have to overpay, and knowing that it wouldn't appraise.  I looked them in the eye and told them that they should relax and walk away.  "There'll be other homes and more listings in a few days and weeks," I explained.  There was time...the world was not going to end if they didn't make up their minds in just a few short minutes.  I explained that there was always the possibility that a year or two down the road they might be upside down on the home value vs. the amount of the mortgage if things take a turn.  It was like I released the two of them from the middle of a  whirlwind.  They let out audible sighs and thanked me.  Later we sat down and discussed options.  I told them the pros and cons of making  an offer that is considerably higher and how this artificial inflation is actually not in anyone's best interest.  Even the sellers could get burned.  I am seeing that there are more deals that are getting canceled during due diligence.  Sellers might lose the homes they are wanting to move into because of cancellations.  The whole thing is insane.  It's up to us, the professionals to rope our clients in a calm them down so they aren't in some half-crazed buying frenzy.  Yes, they might miss out on a few homes, but it will give them time to consider their options, to make informed decisions and oh, by the way, if enough of us keep trying to control this situation, it will restore sanity for all of us.  

Am I dreaming here?  Or can we take back some of the control?  No one is enjoying this.  Sellers feel like their agents aren't doing anything to sell their homes and therefore they question why they should pay so much commission?  Buyers are angry because they have to pay so much and they keep losing out on homes so they blame their agents out of frustration.  The whole thing is ridiculous.  We are all feeling helpless but really maybe not.  Maybe we can change things by being the voice of reason.

Okay...I think I am through with my rant.  I'd love to hear from others.

Tuesday, 23 February 2021, 6:04 AM

You are spot on.  In my opinion the whole process started with our Government printing trillions of dollars with no basis throwing it out on public, bottom line interest rates qualifying lower purchase point clients to jump into 100k more homes, people making short term gains in “no reason stock market gains”, builders increasing the prices crazy with the excuse of increased material cost are the big balloon that is going to burst soon.

People prove again they have short memory forgetting 2000 & 2008.

Tuesday, 23 February 2021, 6:26 AM

Well said, Jessica.  I have felt this way for some time.  I have advised clients exactly the same.

Tuesday, 23 February 2021, 6:33 AM

I'm in Mooresville.  Same situation here.  I'm very concerned about the overinflated offers and ridiculously high DD  needed, just to ensure your offer stands out!

I'm also seeing an increase in BOM.  Whether it's Appraisals, issues with the home, buyer remorse after making a hasty decision just to be competitive...I don't know.  I also don't like the addendum agents are using stating 'if a property doesn't appraise, the buyer will make up the difference'!  No!

I'm not comfortable with any of it. 

My memory is not short!  I do remember 2000 & 2008!

Ok, now my rant is over!!!

Tuesday, 23 February 2021, 7:01 AM

Good conversation here.  I agree that it has gotten stretched to a point of everyone being uncomfortable.  And we are probably due for a pullback on prices and rising rates will help moderate some of the price growth.  But the money printing and markets can stay irrational a lot longer than we think they should.  And a lot of the growth we are seeing in the Triangle is relocations from large cities, the west coast and the NE.  There are many hot markets in the US due to rates but a large part of our pressure is simply not enough inventory for the number of new buyers coming to our area.   An appraiser friend of mine told me what I think is a record so far...home was listed at $990k in Durham and contract was for $250k over asking and $86k in DD money.  We didn't get it.. as if I had to say that :)

Tuesday, 23 February 2021, 8:18 AM

One thing not discussed above is the role of the cash buyers.  A lot of this is driven by people who don’t give a damn what the banks think, now or in the future.  There’s just a ton of cash sloshing around.  Look at the stock market (as well).

A buyer expecting or needing a mortgage should not try to compete with that – Even if the bank allows it.

Tuesday, 23 February 2021, 8:32 AM

There may be other agents on here like myself, but the biggest losers IMO (for now) are the first time buyers.  I have a more buyers now than ever (this time of year) and there is nothing for them to view and when there is they cannot compete…not even close.  It is the exact reverse from when I had more listings than ever…around 2008, but “that” didn’t matter then because there were no buyers;((. 

I have not seen, but would like to see the appraisal gap waiver addendum they spoke of or at least the round a bout wording since we cannot draft our own.  It is just simple language?  Or are they using “no due diligence refund” etc.

Tuesday, 23 February 2021, 8:47 AM

The addendum is not needed as there is no financing contingency in the contract. Even if a buyer signs that they can still back out for any reason or no reason so that is false security for a seller. 

Tuesday, 23 February 2021, 8:49 AM

That’s correct.  So I’m confused as to why agents are using this.  And....if it is working that is even a bigger issue with listing agents not knowing it’s not needed.  I’m asking around and now supposedly this is the new thing.

Tuesday, 23 February 2021, 9:04 AM

Just had a listing go under contract that listed for 250k and offer was $35k over list with $13k DD

Tuesday, 23 February 2021, 9:14 AM

Right.  I’ve been advising the addendum was more semantics and marketing to make the offer look better (anything helps!) and equates to more of a handshake agreement that we don’t plan to beat you up on the appraisal if it comes in low.

Tuesday, 23 February 2021, 9:30 AM

I agree with you Cameron…it is just to reiterate “we won’t ask for price reduction”.  My concern, in addition to not really needing this, is that the appraiser sees it.  Not that it “really” matters, but more of a “cavalier” buyer attitude that may be perceived by the appraiser.

Tuesday, 23 February 2021, 10:43 AM

This thread is extremely helpful as I’m working with several buyers who are missing out.  What “recent” experience has anyone had with OpenDoor listings based on the current situation?

Anything advice is appreciated. 

Tuesday, 23 February 2021, 5:49 PM

Attached is an appraisal addendum [language] that an agent put in the documents for their listing.
If the Property appraises at a value less than the purchase price, as shown on the attached contract, Buyer agrees to pay the difference between the appraised value and the purchase price, and will not request a reduction in purchase price based on the appraisal.

This addendum shall not be construed to alter any other term in the Offer to Purchase and Contract. Should there be any conflict between the Offer to Purchase and Contract and this Addendum, this Addendum shall control.

This addendum shall be signed concurrently with the Offer to Purchase and Contract for the Property.

Tuesday, 23 February 2021, 5:55 PM

I asked an agent the other day why she was requiring the addendum be signed.  Buyer’s agent should be having the “appraisal conversation” with their buyers.  She said that she has experienced buyers who think the seller HAS to lower the price of the house to the appraised value.  She felt using this addendum forced the buyers agent to have this conversation with their buyers so they didn’t risk losing their DD money if the house didn’t appraise and the seller didn’t accept appraised value.

Wednesday, 24 February 2021, 8:51 AM

I do understand the listing agent’s point.  But would it not be better (more efficient and perhaps more honest) to simply ask for a higher Due Diligence Fee?  If the buyer truly is going to make up the difference, what difference does it make when the difference is paid?

A buyer may well be willing to sign that addendum - I don’t see that it alters the contract one little bit.  But a buyer plopping down a large DD Fee, well, that’s a bit more serious.

Wednesday, 24 February 2021, 9:13 AM

Or both because I  have been in transactions where the misinformed agent told the buyers they are entitled to ALL fees paid (DDF, EMD, inspections, appraisal, etc) if the property does not appraise and in most cases the appraisal is completed after the DDP expires. 

A higher DDF is risky but it does show a high level of seriousness in buying the property.  I don't see the addendum superseding an FHA/VA loan addendum in court.  I suppose that is why the seller using that addendum will only consider a conventional loan or cash buyer considering an appraisal. 

Wednesday, 24 February 2021, 9:20 AM

In my opinion, Jessica is 100% right.  It is our responsibility as agents to  make sure the buyer does not pay more than the price on the appraisal,  especially if the buyer needs a loan.  I have been in this situation and I used the Jessica method.  This frenzy which is created most of the time by the listing agent must stop..

My bad experience was an offer and 6 days to get a response.   Buyer had 15 minutes to look at the property and the deadline to submit an offer was that day.  The seller was overwhelmed with all the offers and took his time to respond.   A few weeks later, I checked MLS and the property was back on the market.  The agent called to see if my client was still interested.   oops...maybe the property did not appraise for sale price?????  This big balloon is going to burst soon.

Wednesday, 24 February 2021, 9:25 AM

I loved your rant!!

Hopefully things will normalize sooner than later.

Wednesday, 24 February 2021, 9:35 AM

So true.  Properties are listed at 9am, multiple offer status by noon, and deadline to submit all offers by 6pm. All in the same day!

Honestly,  if i was the seller "I" would question the listing strategy and the intentions of the listing agent, no seller or buyer should feel pressured to make this type of decision in haste. 

Its my opinion that it is a ploy or another form of controlling the market. 

All listings should be marketed a minimum of 7 days, all listing agents/firm should be required to use form 340-T for ALL offers, and the MLS should be required to show the information of the buying firm by having this data pulled from the NCREC and not just the mls board database. 

Wednesday, 24 February 2021, 10:12 AM

Guys, I have really found this email thread helpful.  And I think it would be helpful to share with buyers.  Would anyone be opposed to me turning it into a website that we can share?

Let me know and I can put it together.

Wednesday, 24 February 2021, 10:15 AM

Yes call the "Voice of Realtor reason!"

Wednesday, 24 February 2021, 11:24 AM

It would be interesting to see the statistics that showed the agency buyer side i.e. dual agency, buyer agency, team transaction, etc.

I see a lot of "Coming Soon" ads with full video of the property, price, sq footage, bedroom counts, some even with the address and agent phone number to "schedule your showing by calling me at......).  For some reason I did not think all of this information was allowed.

Wednesday, 24 February 2021, 1:26 PM

I agree with Jessica.  I have been in this Industry for almost 20 years and the some of the same signs we saw in 2004-2008 I can see them happening now.  Over priced houses being driven by greedy Builders and misinformed buyers and sellers.  Reading some of the samples in these conversations and the ones that I have experienced in the past 2 years or so, I feared we are moving in the wrong direction.  I visited a Home Builder this past weekend and I was disturbed and upset (in silence) to learn from the onsite agent that the Builder was only allowing them to sale up to a certain amount of houses per month due to the limited amount of  construction materials available, but at each release a $10,000 increase was added.  This is something I saw happening back in 2008.
I believe it is our job as Real Estate Professionals to inform, educate, advise, and guide our clients to help them make the best decision.  Not just help them make the most money out of their investment or to help them get the best chance to win a bid, regardless of how ridiculous or overpriced it may be.  We need to remind our clients that Real Estate is not a short investment, but long one.  Today’s decisions and practices will affect in the future everyone in our Industry like it did back in 2008.  It is our job to sound the alarm to make sure we protect our Industry and the Economy.

I understand that at the end of the day sellers and buyers have the final say, but we have to make sure we do our part so when the bubble burst, we are not the ones to be blame like we were back in 08.

Wednesday, 24 February 2021, 4:09 PM

Prime example just happened regarding the madness of multiple offers.  

A listing came on the market last night.  I have a 5pm agent confirmed appointment scheduled for Friday at 5pm. I scheduled around noon today.

The listing agent just sent out a mass email through showing time....multiple offer status, requesting highest and best by 1pm tomorrow!  Well, what about my 5pm Friday appointment?  You knew you had multiple offers 1.5 hours ago!  Why bother approving my request to show the property?  How is this in your seller's best interest to not allow the property to be on the market for less than 48 hours? 

I have a cash buyer that is being turned away.

The American dream of becoming a homeowner is the American Homeownership Nightmare.

Wednesday, 24 February 2021, 4:34 PM

I put on market a property and within minutes flooded with showing appointments over 40 requests.  The offers started rolling in.  The seller still lived in home and were still approving appointments.  But someone wrecked their driveway and the buyer nor agent apologized so the seller said cancel all of the remaining showing appointments and called for highest and best right away because of the compelling offers already received. 

They were tired anyway too with all of the people coming inside their home so the sellers are also freaked on this crazy buying frenzy.  Buyer agents were also upset their appointment was canceled but you just have to explain the situation so everyone understands why things are happening.

It's utter madness what's being offered and what's happening.  If you are a buyer agent I feel for you having to work so hard and the buyers think it's because of you they are not getting accepted and go to other agents thinking they will get an accepted offer that way.  

I've had buyers contact me saying their agent isn't doing a good job because they are not getting a home.  It's not their agent fault it's the inventory shortage problem and the low interest rates have caused this mad buying frenzy.

Wednesday, 24 February 2021, 4:49 PM

The frustration of the driveway damages triggered the haste and cancellation.  Just awful.

My appointment has NOT been canceled.  This agent is asking for highest and best with a deadline set 28 hours BEFORE my buyer's appointment. 

The buyer's response, "I bet she wants to make all the money."  Diffusing was required to remove the assumption.

Thursday, 25 February 2021, 8:32 AM

How in the world do we accomplish not taking any offers for a week, so a property can get proper showings without the frenzy?

Thursday, 25 February 2021, 8:39 AM

Sure take offers.  But continue to allow showings and accepting offers for at least a week.  How hard is this?

Unless specifically instructed by the seller to not do this (for some legitimate reason other than the broker talked the seller into a shorter time period), one does wonder who the brokers are serving.  Clearly not their principals, the sellers.

Thursday, 25 February 2021, 9:00 AM

When Carolyn mentioned in [the] thread [above] that a listing should be active and showing for a minimum of 7 days I was shaking my head in agreement….but, then quickly started shaking my head in disagreement due to reality.  I get it, as a buyer you want to “have a chance”, to have a “fair” chance to see the house.  BUT, as a seller, let’s say with 2-3 kids, virtual school, full time jobs, middle of a pandemic things are different.  You are told you have to be out of your house for 7 full days while a minimum of 20 people a day traipse through your “home”….it’s not going to happen.  Vacant houses are a different scenario.

I have done this for going on 16 years and have seen market shifts and have thought about getting out of the business more than once.  This is another hurdle…I have seen things change virtually over night.  It will get better.

Thursday, 25 February 2021, 9:05 AM

The idea is to allow offers to come in for an entire week.  That means that you simply announce a deadline of one week from the time of listing.  This will allow for appointments for virtual showings (which I think is what we should all be doing to a certain degree to rule out the homes that the clients do not wish to see in person) and also allow for a longer showing time for the individuals who are truly serious about the home.  In fact, there could even come a time when the sellers decide on just a few of the offers as their top contenders and go back to allow them a second visit to make up their minds and possibly a highest and best offer from those few offers.  I am just throwing that out as a possible idea of how to keep the insanity and stress levels down.

Thursday, 25 February 2021, 9:11 AM

We are seeing these ridiculously short time periods far too often for it to always be legitimate reasons like you mention.  And I see it just as often with vacant property.  Short viewing periods have become the rule, not the exception.

I think if we are honest, it is past time to question what the brokers are up to.  And for God’s sake, get rid of single-agent dual agency and maybe even single-office dual agency.  Remove the incentive for bad behavior.

Thursday, 25 February 2021, 9:30 AM

Isn't that a true conversation that the listing agent should have with the seller?  If you are listing the property for sale, you have to make the house available using available time slots or restrict to virtual showings only.  But make it a true virtual showing of the property.  If you have a quality property worth the price, you shouldn't have a problem videoing the crawl space,  under the sink, plumbing, etc. even if it is a separate video.

Complete pre-inspections and make the full reports available.  The only buyers that will get to physically see the inside are those that submit their preliminary offers with supporting documents.  This cuts down on the traffic.  Agents need to be held accountable for completing ALL fields on the MLS including uploading ALL documents!  Make the property searchable for buyers looking for specific items (I'm guilty of this but doing better). 

We have a responsibility to put full information in front of buyers.  Especially due to this pandemic. 

Bottom line is WE are responsible for taking our industry to the next level and beyond.  We can't stand idle and or continue to become induced to excel when forced.  A seven (7) day list time on the market is not hard when you explain how it will benefit the seller. 

I'm perfectly ok with it because I don't or no longer have to focus on getting an award, bonus, or free trip at the end of the year.  I don't relish a listing success by the need to publish a "Under Contract in 1 Day" or feel the need to brag or boast about how many listings I've sold.

Just me!

Thursday, 25 February 2021, 9:47 AM

Sellers do not want to leave their home on the market for a week, especially if they are still living in the house.  Agents and buyers are crazy right not.  Calling, texting, emailing, trying to get their clients offered accepted.  Sending insane offers, site unseen.  Trying to find out what would make the seller accept their clients offers.  I feel for both sides of the transaction.

Thursday, 25 February 2021, 10:09 AM

Carolyn, I could not have said this better myself.  I've been wanting to write the exact message you shared and just haven't taken the time.

 - The 15 minute showings for a large purchase - a HOME - is ridiculous. Adjustments should 100% be made by listing agents to allow more time for showings.  Your idea of virtual first, then physical after offers, is a good option to prevent the rush of people. 

 - Listing agents must be confident when offering a longer viewing period  - there will always be a pushy buyer agent writing an offer that expires that will stress your seller out.  This is a HOUSE.  If they really want to buy it, they can wait for the deadline like everyone else.  Of course, it's always up to the seller.

 - Pre-inspections should be done - I'm sure you've all worked with buyers coming from the west coast where this is standard.  All listings are pre-inspected, repairs made, house staged, and they wait a week or two before accepting all offers.  They serve the house up on a silver platter with ALL info for every buyer.  It seems so strange to me that we require buyers to do all the work to investigate a house even after writing a huge check just for the right to do so.  

 - While the idea of keeping a house on the market for a week during the pandemic is stressful for a seller, I think there is a payoff at the end that will make it worthwhile.  This whole situation requires give and take on both sides.  Given that many sellers are also buyers on the other side, hopefully they could appreciate this. 

I'm so glad that this discussion is happening.  I've had 2 first time home buyers this year decide to not buy after learning about the market.  They are saving money for next year because they just can't compete right now.  It makes me sad that young, qualified buyers are missing out because they can't write a huge due diligence check. 

I was listening to a podcast yesterday where the Zillow economist said that they expect 6.8 million homes to be sold in 2021.  That's on par with 2005.  Back then, the lenient financing created buyers.  But financing is different now.  We have no inventory, and people I talk to who bought 8 years ago, who need to move up and need more space, are terrified of becoming a buyer right now.  They are choosing to add on instead.  So many people don't know where they'd go if they sold.

Thursday, 25 February 2021, 10:09 AM

Sellers would be inclined to leave the listing on the market for 7 days if they are aware that it will assist in getting them the best offer and terms possible when more buyers can view the home.  Agents often make the “I will bring you an offer in 24 hours” ad a tactic to get the listing.
There will always be agents calling, emailing, and texting.  That is a part of the business and it drives me nuts.  However, this may be a time where an addendum is attached to the listing pointing out several key items to the agents so he/she can discuss with his/her buyer:
1.  This property will be listed and marketed for seven (7) calendar days including Saturday and Sunday.
2.  The seller will make a decision on 00/00/00 after reviewing all submitted offers.
3.  Showings will only be conducted between the hours of ---- and ---
4.  An open house will be scheduled on Saturday and/or Sunday between --- to ---
5.  ALL offers will be submitted to the seller for review and you will receive a response on form 340-T
6.  Discuss with your clients their intended offer. Please make sure it is their best offer, the seller will not be countering or the seller will counter the top three (3) offers.
7.  The seller has informed ---FIRM NAME--- that they will only accepts offers until 00/00/0000
8.  Agents, please read the Agent Remark section for any potential updates to the showing or offer status.
9.  Add any additional/professional/ethical information
Subject to change.

Thursday, 25 February 2021, 10:16 AM

I completely agree with what you say as far as agents putting all the info in the MLS.  I’m so saddened by the complete laziness lately.  Taking square footage off an old listing.  No floor plan.  No room sizes.  No ages of mechanicals.  Just slapping it on the MLS with no info.

Thursday, 25 February 2021, 10:21 AM

I love that Carolyn!  Would you mind if I used that?  I think that’s perfect.  Set the expectation up front!

Thursday, 25 February 2021, 10:24 AM

I like your list Carolyn.

I feel the frustration when reading everyone's input here.  I had the unpleasant experience with a buyer's agent who tried the time frame scenario and my sellers were okay with having her clients walk because they knew there would be other buyers and that time frame put my sellers into a panic and so I'm on the side of calming them down and telling them it will be okay, the real estate world is a little out of control right now, but I  am there to guide them every step of the way.  I remember putting all offer on a spreadsheet and going over all offer with them.  The agent who submitted the time frame actually came back to us because their buyer wanted the house and decided to wait until everyone could actually see the house before my sellers made their decision, but it did put a stain on the buyer because of the way the buyer's agent handled it from the get go.  It is hard enough out there and we don't need each other being mean or sarcastic with each other or be all that because we all need to make a living and do what is right and in the best interest of our clients (Sellers / Buyers).  I will tell you that there are a lot of younger agents who will find themselves on the other end of the Real Estate Commission because they are trying to do things that are unethical and wrong.

Thursday, 25 February 2021, 10:25 AM

The haste to get a property under contract within 48 hours is contributing to this bottle neck of chaos.  Buyers are pressured to make ridiculous offers on properties, losing DDF on properties where there are no disclosures by the seller and agents of material facts,  buyers are pressured to make a decision before or at the time of showing, etc.
The current market will create serious problems within the next two years.  We have to consider more than the “NOW.”  History will repeat itself in the future if we have not learned from previous mistakes.

Thursday, 25 February 2021, 11:31 AM

ALL Clients (Sellers & Buyers) are the Firm's clients.  The agents represent the clients on behalf of the Firm.  Now days this seems to be forgotten.  One of the reasons why agents have to work under a Firm, it’s to make sure agents follow ethical rules.  The Firm should have ethical rules in place on how agents should represent the Firm’s clients.  One of the jobs of a Broker-in-Charge is to make sure the Firm’s clients are being well represented by the Firm’s agents.

Thursday, 25 February 2021, 7:24 PM

Remember we work for our sellers, the clients and they are the ones who make the decisions.  I recently had sellers that accepted an offer sight unseen with no showings.  This is what THEY the CLIENTS wanted.  They had small children and were VERY nervous about tons of buyers and their agents walking through their home with the current situation with COVID.  So please tell me how you expect to convince sellers to allow showings for 7 days?  Which could essentially mean over 100 people walking through the home.  My clients knew they probably could have gotten more money- but to them less money was worth the relief of not having a ton of people coming into their home.

Thursday, 25 February 2021, 7:32 PM

Best reply yet, Tanya.  Kudos to you.  Too much projecting which is frustration in the name of representing clients.  And believe me I understand the frustration with the current state of the market, but I also think the frustration is being misapplied by some.  I love your stance and appreciate your contribution.

Thursday, 25 February 2021, 8:16 PM

Absolutely Doug I agree best reply so far Tanya.  Sellers call the shots and 100s of people in your home over 7 days doesn't sound like a good idea during a pandemic.


Editor's Note.  Okay a bonus, for whoever makes it this far:  Glenn Reynolds linked to this post and the comments on his site are worth reading.  All from non-brokers as far as I can tell.

Also, this is a month or so old, but it's a fair description of part of the issue:



  1. My primary concern with the current trend is the impact it is having on first time home buyers. Typically, they do not have 20 or 30k lying around to throw at a due diligence fee or an appraisal. We all know what happens when you do not have a good foundation in a market.

  2. What's driving this? Interest rates? People fleeing cities? GameStop profits ;-) ?

    1. Low interest rates and easy-peasy loans, same as 2005/6/7

  3. Paul Simpson asks: "What's driving this? Interest rates? People fleeing cities? GameStop profits ;-) ?"

    All of the above? This is in the Research Triangle area, right? One BIG driver is Silicon Valley employees, finally free of the "office presence" requirement, choosing to switch coasts and get positioned for their NEXT job. They move to NC, flush with the million dollars they just got from selling their tiny Mountain View condo, wanting a good area to work from home for Google or Fakebook or whoever, and have a nice place to raise a family, which wasn't going to happen in Mountain View or San Francisco.

  4. Wannabe first-time home buyer here. Any estimates on how long before the bubble bursts? We are doing our best to not get swept up in the madness, but we don't know if "waiting it out" will be a real option.

    1. Like all bubbles, I think it is reckless to make predictions on how long it lasts. But it seems to me that you have two choices, as you point out: “Get swept up in the madness” or “wait it out.” My question for you, and for all other current buyers is: Why not wait it out?

      I know that there are legitimate reasons for buying, even during this bubble. But here’s another question: Do most current buyers have such a reason? Or, are they being driven by fear and greed?