The market, as it corrects is quite different this time. It is not uncommon to have 5 offers on a property and have 4 be way off the mark. How far off the mark?

I was speaking with an agent yesterday regarding his pending sale. I was curious what it sold for, because it had been on the market for quite a while at $619,000. It was in escrow for $585,000. This was about what I had expected. But what was notable about this transaction, as with many transactions that I am having, is there were 4 other Low Ball offers. Some as low as $500,000, on the $619,000 list price.

In the early 1990's the resulting sale may have been the same, but with a total of only one offer. No 5 other buyers trying to acquire the property as a below market price.

Why is this important? Because it's a comment about the nature of the market. And actually about the potential strenth of the market. There are a lot of buyer out there becoming willing to step in and buy homes at a support price that is just below where homes are selling. This type of "bottom fishing" so to speak says that the market is likely putting in a bottom.

Last fall when we saw prices plummet by about 10-15% in a short period of time, no buyers were willing to step in. That is why prices fell. Now, interest is cautious, but there are many cautious buyers sitting watching and waiting on the sidelines.

In 1990-1995, the would be cautious buyers had either left the state or were concerned about loosing their job.