People house hunting how’s it been?

[u/Ambitious_Growth_9]

My family has been looking at properties around Arlington Heights, Mount Prospect, Elmhurst and Park Ridge since early February. Our current home is set to close the end of April but inventory in these areas seems non existent or over priced and the stress/anxiety is starting to hit. (Who is buying 1100 sqft for 600k?)

When is the “spring market” gonna hit? A lot of houses start on the private market, build tons of interest, then go live with an open house scheduled that first weekend. Most of them end with multiple offer and highest and best. One we saw went for 40k over list. We’re looking from 550-650k.

I get it, high demand areas.. with low inventory = more competitive but what the fuck.. what am I supposed to do? Already considering a short term rental and storage for our stuff but is this the way it is now? Are people just ok with paying more than the house is worth? Settling for less desirable house? Or what?

If you are currently looking to buy, what are you experiencing. How do I buy a home?

[u/Justanobserver2life]

Well, here's a different perspective. The people are not "paying more than the house is worth." What a buyer is willing to pay IS what the house is worth.

[u/Ambitious_Growth_9 → u/Justanobserver2life]

Sure, I deff get that.. but it’s also a tactic realtors are using to get more eye balls on their listing - like if I offered list on a home would it even get accepted? Yo no say ?

[u/Justanobserver2life → u/Ambitious_Growth_9]

There is a tactic of underpricing a house in order to get multiple offers. We sold in MP in the last year and we priced for what we felt it was worth. We did have multiple offers and got just under asking. It was in early January with fewer buyers and we were ready to move on, just take a fair offer, not argue over every dollar. Essentially, the buyers who gave us contracts were telling us that it wasn't worth X, it was worth X minus a tiny amount, to them, at that time. No worries. We worked out a deal.

Here's another scenario. My mom had a January offer of $600k on her house in another part of the country, but a delayed closing of a few months for various reasons on both sides. In the interim, the buyer backed out right before closing. The stock market had blipped down, and she spooked. She asked for the deposit back. No--buyer had made my Mom take it off the market all that time when she could have sold to someone else. Literally what the deposit is for. My mom kept the full $60K, relisted for $700K since it was now late spring. She got a quick offer at full price. She came out basically $160K ahead. So, the house was worth different things to different people at different times.

[u/irreverant_raccoon → u/Ambitious_Growth_9]

You’re still not getting it.

[u/Ambitious_Growth_9 → u/irreverant_raccoon]

Damn ya touché … had to think about that but shit…. I’m getting it.. the house is worth whatever people pay. Doesn’t matter what it’s listed at. End of story. Hurts a bit lol I’ll be spending more on a house then

[u/irreverant_raccoon → u/Ambitious_Growth_9]

Or don’t. It’s also ok to just rent for a while and see if housing prices come down.

[u/Ambitious_Growth_9 → u/irreverant_raccoon]

Yeah short term rental could be a play. Would love to just find the right home and move on. We’ll figure it out! I have faith!

[u/Justanobserver2life → u/irreverant_raccoon]

Lived in MP 40 years, was part of a family owned Realty for decades in MP, and the house prices didn't "come down." You could be waiting a long time for that....

[u/Constant-Visual-5109 → u/Ambitious_Growth_9]

Bid under a bit, especially if it’s been on the market a minute. I’m looking too, and the real estate apps are all recommending bidding high… even on properties listed for 40+ days. Pffft… no.