Fewer Bidding Wars Seen in Albuquerque’s Housing Market
(Transcript Snippet): “Tracy: But people still need to buy and people still need to sell. And the market is still really good for that.
Tego:
Well, and it’s a good segue into this story that I saw from the it was an Albuquerque business first and the headline was the housing market seen fewer bidding. So you talk about some of the stories of 2021 in, in the residential real estate world in Albuquerque. And one of them was bidding wars. Right. For sure. And, and so when we say bidding wars, what, what do we mean, Tracy?
Tracy:
We’re talking about when houses for sale and they get multiple offers and people are basically, you know, know it’s like an auction, right? They’re, they’re bidding and putting in what they are willing to pay and what terms they’re willing to buy the house under that are maybe above and beyond. What’s being asked for from the buyer,
Tego:
Correct. There, the, you know, obviously price could be something about terms could be the way if they’re financing or maybe they’re gonna pay cash. Maybe they’re gonna wave inspections or be lax on inspections or whatever it is certain things to give, lease back. Yeah. Lease back, let the, let the seller stay in the home for a little bit longer to, to be the offer that gets chosen out of the, you know, multitude of offers that, that we saw. And it’s interesting, cuz this headline says, you know, the housing market has seen fewer bidding war and, and I’ve got my own opinion on this, Tracy, but I want your opinion. I mean, earlier in the summer, you know, April, may, June, it was, it was pretty frantic
Tracy:
Earlier this year. One of my stories yeah. Is the house that I represented personally. You know, we have a team of realtors that work with us that help buyers and sellers. And we have in know, listing specialists or home selling specialists and I listed one and put it for sale for a client and it was crazy. It was Northeast Heights and it was a huge opportunity, a house that had, it was all original linoleum floors, all the kitchen cabinets and counters, everything was original. The trees were overgrown. Nobody had lived there for a few years and it had been donated to a charity. Right. Yeah. And we had 23 offers and significantly above list
Tego:
Price, you know, so even though it was, it was needed work. It wasn’t a, it was in the right neighborhood if you will. Right. The
Tracy:
Right bones in the right neighborhood. Yeah. Yeah. And so it, it ended up selling for about 95,000 over the list price, which the list price was higher than any past sales had justified. So it was also listed on the high end of the scale.
Tego:
Yeah. It wasn’t like, you know, the, the listing price was some bare bottom number just to try to get an auction effect. It was, it was actually
Tracy:
Two price pretty
Tego:
To market based on, you know, what it sold in the past. But of course earlier in the summer things, you know, just really heated up. And so we, we, we see this headline, I’m gonna keep going back to this until I get you to answer the question, how seeing fewer bidding wars. Yeah. How how’s the market seen fewer bidding wars, you know, just, just last week and, or was it this week anyway in the the business first. So what do you think is the reason that there’s fewer bidding wars? And I know we’ve seen that here. Oh. So that just, just on our team, just, you know, in our, in our little group, little group, big group we’re not seeing it as, quite as crazy. It was early in the summer. I
Tracy:
Thought your question was, are we seeing few fewer bidding wars Traci, but you already have established a baseline that we are okay. Yes. Yes. So yes, we are seeing fewer bidding wars. We’re still seeing bidding wars, but maybe not 23 offers. Right. We’re seeing three offers, two
Tego:
Offers. Why do you think that is? I think
Tracy:
That people think that it’s not a right time to buy that a lot of the buyers are tired and don’t wanna get involved in a bidding war. I think they feel like, you know, this is my max. Like if I can’t compete, then I’m not even gonna get in the game. I think people are saying, I’m gonna wait for the market to shift. Right. Why do you think,
Tego:
Well, I’m gonna lead you to what I think. So go ahead. Earlier in the summer, when we saw, you know, this kind of frantic activity going on, do you think that the buyers and the buyer brokers realtors in the market knew how to deal with this type of activity?
Tracy:
I think that most of them did not. I think most of them didn’t know how to write an offer for the market that they were in. They were writing an offer, like it was 2018. Right. Yeah. I agree with that. Since you led me there. I agree with that. I, I think they weren’t competitive offers of the 23, you know, that I got on that house early on when the bidding wars were at their highest probably four or five of them were really written very competitively. The rest. I didn’t, I mean, I put ’em all on as spreadsheet, of course, for my seller, but really we were looking at maybe four offers to see who we’re gonna work
Tego:
With. I think it’s just like anything Tracy, as you work through something that’s going on. I mean, we could, we could apply this to what’s going on with, with COVID right. As we learn, as we get more information we evolve and we change. And, and that’s my feeling about the whole bidding war thing is that everybody’s changed and adapted to the new normal you’re not seen. Oh, I hate that term. I know you gave me when you said it. You gave me that look, I know, I know it’s not, not a so, but in the realtor community, let’s just say you know, if, if you know, there’s gonna be multiple offers on a property, you know, there’s gonna be high demand for this property and your, your client is, you know, maybe wanting to do something that doesn’t make sense in the current market conditions.
Tego:
There may be a little more education now than there was back then. That’s and, and this may not be that interesting of a topic, but I think it’s, I think it’s, you know, we all adjust right. And how quickly you can adjust to the current conditions is important. And I think, I will say for our team, that’s been great because we do see so many transactions and we see, you know, all different as we call ’em experiences with people buying and selling so we can adjust quickly. And we’re doing the show every week as well. Allows us to adjust quickly to see what’s going on in the current market conditions. And
Tracy:
I think that, yeah, good insights and adapt to it. Yeah. Yeah. I think, you know, our buyer consults. So when somebody’s interested in buying a house, I know they’re a story we have about the steps, right. But when they’re interested in buying a house, obviously getting somebody ready, preparing ’em for the process and how it works. And then, you know, knowing what their resources are in their tolerance for being in a bidding war and what they’re able to do, are they able to allow some lease back time for the, so they know when they’re moving out, the house is really sold or maybe they need to buy a house and they need, you know, a week in between so they can get this one closed, get their funds and move to a new house. Right. Can they do that? But do they have other funds they can add in, can they wave an appraisal waiver, you know, do an appraisal waiver and not make it contingent upon that. So all these different things in the buyer consult, but then when we we’re working with them, we need to make sure we’re looking at the right price homes. So we leave that headroom for them. So if they need to offer over what it’s listed at, right. That they can compete. So, you know, there’s a lot of you’re right. We we’ve
Tego:
Gotten better problem. Then when, when you get to that point too, then there’s also bringing in the lender. If there’s gonna be a loan involved in making sure that they can qualify and, and do what’s needed, if it’s over the other challenges, if the, the appraisal doesn’t meet the purchase price, can, can the loan still work. So right there, there’s that as well.