Can a Market Be Too Hot?

[Kevin Connell]

I have inquired about a couple of local Northwest Arkansas properties with two agents that I know. Both said, in a manner of speaking, that it's so hot, it's not! What they meant was that if you weren't on the inside track on properties coming onto the market, prepared to pay 20% above asking price and a cash buyer, you didn't stand a chance. They also both promised they weren't trying to discourage me.

The first property, a single-family home listed for $150,000 was being sold "As Is," and with approval of the court (I'm not sure what that means). It sounded promising, so I called my agent to make arrangements to see it the next day. He sent me a text telling me that there were 16 offers (in 2 days) and the highest was $165,000 cash. I backed away, as I was preparing to offer less than the $150,000. I was a little discouraged. I also got the talk about how hard it is to buy in this market right now.

The second property was unusual, to say the very lease: It is a cute house - and a body shop! I wasn't really serious, but I was curious why everything else sells before a sign can be put in the yard, while this one had had signs up for a month. I was thinking it might be a bargain, as far as houses with body shops go. It was $550,000. As an aside, I again got the talk about how hard it is to buy in this market right now.

Apparently, it's hard to buy in this market right now. I'm still betting that  it's not impossible, however. And, I feel a little more educated, and even a little more confident, having made the calls and asked the questions. I'm not just sitting on the sidelines.

I'm going to my first REI NWA meeting, in Bentonville, this evening, and I am looking forward to it. Perhaps I will meet some of you there.