I fully realize that this is just anecdotal evidence, but I can't help but think that the buying activity has picked up dramatically in Austin, and here's why:
I have had multiple offer scenarios TWICE in 2009 already!
In January, I wrote a post about a multiple offer deal (six total offers) that I was working on which clearly demonstrated just how tight Fannie Mae guidelines are for the self-employed: Requiem for the Self-Employed Homebuyer
Before I go any further, I will mention that the buyer reference in the above link was turned down by FIVE lenders, but they are now approved! I had a bunch of my AR friends ask about this one after it was written. We are now supposed to close by Monday. But I digress...
Today, I received two offers on one of my listings (could have been three, but the third agent decided not to enter the bidding war). We had lowered the price a little bit, in an effort to drive more traffic because they are moving up to a larger home.
This home will likely go under contract for a few thousand dollars above the asking price, as did the other home in January. In 2008, I don't recall ANY multiple offer situations arising for my clients.
As additional evidence of improvement in the buyer activity, I have worked several Saturdays this year with buyer clients, and at least three times we have encountered other agents showing the same houses that we were about to see. This has happened with both new and resale homes. A few years ago, that was a common occurrence, to be sure. However, in 2008, I wasn't running into fellow agents in the trenches.
March is shaping up to be my best income month since 2007, and I am sincerely hoping that this carries forward into the typical spring and summer selling season. With the $8000 tax credit for first-time buyers in place, I already have at least five clients who are going to take advantage of this. Frankly, I should be able to exceed last year's income by May or June at the latest. This post, however, is not really about me. It's about maintaining some measure of focus in a hurricane of difficult economic times.
I don't mind admitting that my income for 2008 was at best subpar, at least for me. I could probably get just about ANY office job and make as much as I made, along with having benefits. However, I still feel that my earning potential is the very best in this business, which I chose as a career 12 years ago.
I saw economist Ted Jones speak today, and he was talking about the outlook and his own forecasts for the upcoming 2-4 years, both locally and nationally. Not everything he said was rosy, of course, but I didn't expect it to be. He IS an economist, after all. I was thinking today about having weathered a ridiculously tough year in this business, and how blessed I feel to still be left standing at the cusp of what should prove to be a great year for us financially.
The time has come to innovate in order to survive, and I feel more prepared for that than ever before. I am good at what I do, and I have an arsenal of new tools to help me achieve my goals now. Since the new year started, I can attribute SEVEN clients to my blog and other social media involvement so far.
Here are a few resolutions that I have made - join me if you like:
There's no need for excuses anymore.
This is not the time for complaining, whining, or finger-pointing.
I have decided not to allow fear to rule the day in my business or my life.
I shared in a post last week that my personal keyword for 2009 is "UNAFRAID". With that in mind, it's time to get over it and move forward. The catchphrase that Ted Jones used today was "Get Over It" when he showed this short and funny video, and it struck a chord with me for some reason. Maybe it will resound with you, too. It just makes the phrase a bit easier to remember: GET OVER IT!
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I'm with you, man ~ NO FEAR! Damn the torpedoes; full steam ahead!!
Jason thats awesome.. business is certainly looking more promising around these parts too. The buyers I am working with now are motivated, qualified and ready. I think the lookers went back into hiding .. maybe because of "fear". goodluck to you for continued success this year!
Jason, This is good news. I always tell sellers that if we price it right we may get multiple offers when sellers want to price high and say '
'they can bring an offer.'
If you fear the worst it will happen but if you go out there with a positive attitude and are willing to take a chance good things will happen. Good post Jason and great news about your sales.
Good to hear it. I'm experiencing the same thing here in Atlanta.
The interesting thing is that it seems that half of the first time home buyers I talke to haven't heard of the $8000 tax credit. Once that gets out to the average buyer, I think it will really get people buying.
Jason...
We are seeing increased activity in 2009, but mostly in properties under $120K If the property is under $100K, the multiple offer scenario is almost a certainty!
Jason: Love the tone and your keyword too. What a great idea to change your most common password to an affirmation word. Just think how may times we key in our passwords.... I am an optimist and so looking forward to 2009 - Oh my goodness, 2008 was a tough one, but it is over! - GONE! Never to be lived again!
So glad to here things are turning around in Austin. Thanks for the inspiring post...
I've seen a pick up in activity this past month or so. I had two contracts sent to me yesterday and have heard of several multiple offer situations. As for the self employed, it has become very difficult for them since the mortgage crisis hit. Maryland passed a law last year that lenders must verify that borrowers have the ability to make the payments. Bye bye No Doc, No Ratio and Stated Income loans. There are still a few lenders that will do them with significant equity and good credit where allowed. As much as congress beats on them, all these loans aren't bad. They've been around for many years and worked well. The trouble began when borrowers were allowed to make smaller and smaller down payments with marginal credit. Everyone is being hurt by the new rules. Self employed people can't buy or refinance and states and county's are being hurt with less transfer tax income from real estate. Hopefully, after things settle down, we can find that happy ground in the middle of the road.
Jason, I too, just this weekend and 2 weekends ago ran into other agents showing the same home as me and I thought it was a good sign. It is posts like yours that keep me motivated to keep blogging. Thanks.
Multiple offers are fun aren't they! I just did an article on that exact subject. I have been involved in a few of them myself lately.
Jason,
It sounds to me like you are doing your job and pricing the proeprty right and folks know that they agre getting a real buy.
Jason - as children we are taught to color within the lines. Not to leave marks outside the border. I think 2009 is the time that we have to make splashes of color outside the lines. We must always remain ethical and professional - but an occasional burst of 'outside the lines' thinking can certainly take us a long way. Great post, my friend!
I have written 5 offers so far this year that were in multiple offer situations. Our activity has certainly picked up and I hope it continues and that yours does too.
HI JASON! I am in two right now with multiple offers - and my last one went over the ask price to secure it. I don't pay much attention to the "no one is buying" things I hear. I believe it's my attitude that makes the difference. And I have always believed that people, for whatever reason, will need to sell their homes - and likewise, people will always need a place to live and want to buy homes. That's a good combination as far as I can see! -- Gabrielle
Jason,
Nice post!!! Let's all resolve to get rid of fear...!!! Thanks, Fran
My fortune cookie said the other night, "Keep your determination to follow your path you are on the right one"- I really liked that.
Dear Jason,
Congrats on your good business fortune!
I have been the buyers agent on 3 multiple offers this year. They were all priced below market. My buyers knew it, but still had to play the game! All three lost.
One who lost, but put in a full price backup. The other contract closed!
I am doing an open house this weekend. I expect excellent results!
Thanks for such a positive post!
Barbara
I am not that busy...but you go, that is awesome. I like the three resolutions...I'll make them mine as well. thanks,
I was about to post on the same thing when I read your post. I've had at least 14 incidences of multiple offers in 2009! I wonder what it all means? Is it really a turning trend? By the way, I went ahead with the writing of my post and linked back to yours. Excellent post as always!
Eva Meier (@DelMarAgent)
Jason - we are working with several buyers suddenly and so many of the recent offers have indeed been in a multiple offer situation. Buyers can't believe it. Especially in prices under $300K. And yes going over asking price. ~Rita
Great post Jason! And I whole heartily agree with your resolution. Especially the first and second you have there. There are no excuses and finger pointing doesn't do a darn thing.
Awesome Jason. Congratulations on all of the success so far in 2009.
hi, Jason:
There's alot of wisdom in "I have decided not to allow fear to rule the day in my business or my life."
That jives with one of my yearly resolutions: I will face my demons and my fears daily... Some days I may lose the battle, but I am determined to win the war.
thanks for sharing.
Jason,
It's good to hear about your Austin market showing some nice activity. Las Vegas scene is starting to stir up, too, with prices astonishingly low largely due to foreclosure pricing by banks. Nevertheless, any way the market can recover is warmly embraced.
Jason - Great resolutions! Reality is in part what we make it. Thanks for sharing!
Jason - Thanks for sharing your encouraging news! It's picking up here in Missouri, too! :)
Fear not, Jason. It says it over and over in the Bible. Love that video!! That first car besides being fearless was DARN LUCKY! Continued success to you in 2009!
Hi Jason -- I've had multiple offers on two of my listings in the past few months, so it's not all doom and gloom.
WE need to give our buyers the facts and that is far more than is being reported by the media - there are good things to say as well.