Sales stay level while inventory continues to decline.

Do you remember when you would see a house that looked nice and was listed for a fair price, yet you thought you could get a better deal? You might make a first offer of 75% of the asking price and give them 24 hours to think about it. You were the only fish in a big pond that was nibbling at their worm and the seller would counter at 95%. You think, "Yes, we have them on the hook now!" You counter their counter with 82.5% and finally settle the deal at 87.5. Those were the days. Less than a year ago I helped a buyer get into a home for 75% of the listing price.

This is what today's market looks like. If you look towards the lower right hand side of the bottom graph you will see where the demand overtook supply. At this moment, if you are selling your home, you are 100% in control of your financial future. Here is a recent case that a great home was priced at what seemed to be a too good to be true price.

2605 W Magnolia

The story of the Magnolia house is one of wonder and glory. I remember the day that this home, which a beautiful front elevation came across my automatic updates. I flipped through the photos and saw the price. $180,000. I looked again because I thought it was an error. An 1800 square foot house listed for $100 a square foot. I thought to myself, "Is the address correct? This says it is in Rogers, Arkansas." Indeed, it was in Rogers. I looked at my most recent chart and showed Rogers had an average list price per square foot of $142. When something like this happens I think, "What's wrong with it?" My Daddy always told me if something seemed too good to be true it probably was.

Is this too good to be true? Upon further research I found that the home was built in 1979. Homes with a few years on their bones do tend to sell at a below average price even with high end finishes. There are always worries of invisible problems that can arise with age. But I saw the photos. This house did not look like it was only worth 70% of the average. I didn't have a buyer looking for a three bedroom at the time so that was the end of my research.

This week in my team's sales meeting, I found out that one of our members aided a client in making an offer on this home. Their offer was $200,000, or 11% over asking price. My team member was confident that they had a very strong highest and best offer going into the weekend. The home was listed on Wednesday the 17th of March. The home went pending on Sunday, March 21st.

This is very common. List Wednesday or Thursday, open house Saturday or Sunday. The MLS remarks will read that all offers will be reviewed on Sunday or Monday and to please act accordingly on contract expiration dates. Offers are sent with Dear John love letters. Offers are sent with escalation clauses because some agents do not understand what "highest and best" means. Some offers are low-ball cash offers. Some offers are well over ask but want closing costs, home warranty, require FHA/VA financing with their stringent inspections and more.

I have not personally seen this contract, but I do know the closing price.

$221,000

221,000/180,000 = 1.22

This is 22% over asking price.

Welcome to the NWA Residential Real Estate market, 2021.