Is This Why So Many Buyers Are Shocked By Home Prices?

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All of my home buyers this year have been forced to pay anywhere from $50k to $200k more than they thought they would have to pay to buy their new home. I think I know why. First, consumers typically start shopping for homes online at least 4-6 months before they start writing contracts on homes. So, 6 months ago the homes they really like online were listed around $750k and they think those same homes are still worth around $750k.

But, 2 things have happened. First, rarely do our clients ever go and relook at these homes 30 days later to see what they sold for. If they would have they probably would have seen that those homes sold for $800k to $850k. Now, similar homes they like are priced at $850k and they are surprised and then are even more surprised that to win the bidding war on that home will require them to pay $900k, $950k or even $1 million for their new house.

Thus, I would strongly recommend that when you first set up a home search for your clients in the MLS that you also sign them up to see recent sales that match the criteria of what they are looking for in their new home. This way your clients are much less surprised at what they will have to pay. I am curious…how many of you do this?