{"id":3177,"date":"2021-04-02T08:27:00","date_gmt":"2021-04-02T12:27:00","guid":{"rendered":"https:\/\/propertyonion.com\/education\/?p=3177"},"modified":"2021-04-27T09:19:00","modified_gmt":"2021-04-27T13:19:00","slug":"dont-fall-victim-to-seller-bidding-wars","status":"publish","type":"post","link":"https:\/\/propertyonion.com\/education\/dont-fall-victim-to-seller-bidding-wars\/","title":{"rendered":"Don\u2019t Fall Victim to Seller Bidding Wars!"},"content":{"rendered":"\n<p>Don\u2019t Fall Victim to Seller Bidding Wars<\/p>\n\n\n\n<p>I believe anyone of sound mind would agree that the Palm Beach County real estate climate has escaped the boundaries of logic as of late.<\/p>\n\n\n\n<p>During my usual round of daily phone calls, I\u2019m entertained with fun and wild stories of people from California and New York buying 10-plus million-dollar properties sight unseen over the phone. A simple FaceTime tour can procure a 15-million-dollar sale from a buyer thousands of miles away. A house is listed on Friday, and people begin climbing over each other like those who buy out the toilet paper from Costco at the mere mention of a hurricane.<\/p>\n\n\n\n<p>My attorney \u201cI\u2019ll pay whatever\u201d mentality has taken hold. It\u2019s easy enough to understand the panic driving the recent migration changes. <strong>Panic can drive all sorts of things, and that includes driving naive new investors \u2014 attracted by wild numbers \u2014 into a market.<\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">In this Article:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/propertyonion.com\/education\/dont-fall-victim-to-seller-bidding-wars\/#The_Current_Florida_Real_Estate_Market_Is_Volatile\" >The Current Florida Real Estate Market Is Volatile<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/propertyonion.com\/education\/dont-fall-victim-to-seller-bidding-wars\/#Florida_Is_the_Perfect_Change_of_Pace_for_Many_Homeowners\" >Florida Is the Perfect Change of Pace for Many Homeowners<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/propertyonion.com\/education\/dont-fall-victim-to-seller-bidding-wars\/#Tread_Carefully_and_Bide_Your_Time\" >Tread Carefully and Bide Your Time<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Current_Florida_Real_Estate_Market_Is_Volatile\"><\/span>The Current Florida Real Estate Market Is Volatile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>During my usual <a href=\"https:\/\/propertyonion.com\/property_search\/\" target=\"_blank\">new listing scour<\/a>, I stumbled upon a 3,500-square-foot, zero-lot-line house on a quarter of an acre listed for $1,075,000 in the ever-so-hot West Delray market. I\u2019ll be watching. The only conclusion I\u2019ve come to when analyzing a market like this is that I\u2019m simply trying too hard.<\/p>\n\n\n\n<p>Take one quick look at the stats from February and you can see how bubbly things are getting in Florida markets as a whole. The dollar volume alone is up over 48% year-over-year even though new listings are down, and <strong>inventory has become absolutely anemic at a 56% drop since 2020<\/strong>!<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"870\" height=\"580\" src=\"https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica.png\" alt=\"A picture containing table\n\nDescription automatically generated\" class=\"wp-image-3178\" srcset=\"https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica.png 870w, https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica-300x200.png 300w, https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica-768x512.png 768w, https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica-345x230.png 345w, https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica-770x513.png 770w, https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica-370x247.png 370w, https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica-440x294.png 440w, https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica-570x380.png 570w, https:\/\/propertyonion.com\/education\/wp-content\/uploads\/2021\/04\/a-picture-containing-table-description-automatica-170x113.png 170w\" sizes=\"auto, (max-width: 870px) 100vw, 870px\" \/><\/figure>\n\n\n\n<p>At recent social gatherings, I\u2019ve been amused by the number of <a href=\"https:\/\/propertyonion.com\/education\/rehabbing-a-fix-flip-a-beginners-overview\/\" target=\"_blank\">new residential flippers<\/a> attempting to convince me that they\u2019re crushing it. \u201cWe\u2019ve got two or three going at once. We plan to just clean them up and sell them for huge returns,\u201d they say.<\/p>\n\n\n\n<p>They always neglect to mention the overpriced offer they accepted from a happily willing seller. The buyer was happy to win what was hot.<\/p>\n\n\n\n<p>I had an agent relay via text that he had multiple cash offers above asking. Since he was having brunch, he was too busy to answer my call to discuss my potential offer. That kind of attitude will no doubt prove him to be one of the <a href=\"https:\/\/propertyonion.com\/education\/our-real-estate-agent-level-membership-launches-with-10-commissions\/\" target=\"_blank\">great real estate agents<\/a> of our time.<\/p>\n\n\n\n<p>This panic price driving can be seen in many arenas in life. I\u2019ve been on the bench coming up on a year now, watching closely for any semblance of rationality. Many of my friends and colleagues call me crazy for not doing anything.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Florida_Is_the_Perfect_Change_of_Pace_for_Many_Homeowners\"><\/span>Florida Is the Perfect Change of Pace for Many Homeowners<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In years past, Florida was always thought of as a second or <a href=\"https:\/\/propertyonion.com\/education\/13-florida-cities-on-u-s-news-world-report-list-of-best-places-to-retire\/\" target=\"_blank\">retirement home state<\/a>. I\u2019ve even heard phrases like \u201cFlorida is for failures.\u201d I always resented that. I was excited to run from New York seven years ago to call this great state home. I haven\u2019t regretted it for a minute.<\/p>\n\n\n\n<p><strong>Florida is a real place for people to plant their roots and begin a new chapter for their family. <\/strong>From a cost-of-living perspective, savings on property taxes can make a huge difference. Your million-dollar house in Long Island can put you back $25,000 a year, while you can slash that amount in half for a property of the same dollar value in Florida.<\/p>\n\n\n\n<p>New York income state tax rates can be as high as 8% compared to the Florida big fat zero. Parks, roads, and streets in New York cannot hold a candle to those in Palm Beach County.<\/p>\n\n\n\n<p>New York\u2019s failing economic policies are now at the point of taxing legalized marijuana to generate much-needed revenue from a rapidly declining tax base. Maybe they hope to get the remaining tax-paying citizens high enough to believe staying makes any sense.<\/p>\n\n\n\n<p><strong>The virtual workplace has also opened people\u2019s minds up to the possibility of calling Florida home.<\/strong> Society has proved to be just as efficient outside of a <a href=\"https:\/\/propertyonion.com\/education\/make-sure-to-add-a-home-office-classroom-to-your-flips\/\" target=\"_blank\">physical workplace<\/a> \u2014 in some cases, even more efficient.<\/p>\n\n\n\n<p>The combination of being stuck at home, low mortgage interest rate offerings, and Governor Cuomo wanting to pop into your Thanksgiving dinner for a head count certainly turned that planted seed into real motivation. Toss some panic on a fire that was already lit and you have an atomic explosion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tread_Carefully_and_Bide_Your_Time\"><\/span>Tread Carefully and Bide Your Time<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Advice is something I\u2019ve learned not to give to people anymore. They may hear what you are saying, but people will always do what they want to do. However, since I\u2019m merely putting pen to paper, I don\u2019t see any harm in jotting some down for those who may take it for what it\u2019s worth.<\/p>\n\n\n\n<p>If you were in a field staring at a tornado, would you walk you and your family right into it? Throw a ball up in the air and I promise it will come down just as fast.<\/p>\n\n\n\n<p>Let me be clear. <strong>There is a distinction between purchasing a home for your family to grow in versus investing and flipping.<\/strong> Yes, your home will certainly be one of the biggest investments you will make, but I am bullish and long on Florida real estate. Especially <a class=\"wpil_keyword_link\" href=\"https:\/\/propertyonion.com\/education\/palm-beach-county-real-estate-2018\/\"   title=\"Palm Beach County Real Estate Outlook 2018\" data-wpil-keyword-link=\"linked\"  data-wpil-monitor-id=\"29\" target=\"_blank\">Palm Beach County real estate<\/a>.<\/p>\n\n\n\n<p>Are prices high? They sure are, but money is also cheap. In the short term for investing purposes, the volatility could not excite me any less. The <a href=\"https:\/\/propertyonion.com\/education\/you-need-to-keep-your-contractors-on-budget-heres-how\/\" target=\"_blank\">pitfalls of new construction<\/a> in a time like this can produce some major unexpected economic flares in your pro forma. Since time is money, be prepared for your project have unavoidable delays.<\/p>\n\n\n\n<p>Due to demand increases in the hot new build market right now, if you are not prepared for PGT windows to be ready in 22 weeks, custom roof trusses to be ready in 18 weeks, and difficulty in locating electric breakers, then you are in for some sour times.<\/p>\n\n\n\n<p>I am a firm believer that you make money when you are on the buy side. If your entry position is comfortable, you can always avoid real danger. <strong>This is a seller\u2019s market, and strong entry points at this time are few and far between. <\/strong><\/p>\n\n\n\n<p>Don\u2019t let the wild numbers, party conversations, and excitement get the better of you. If you are in to invest, bidding wars only benefit the sellers. Jumping into a burning building, moving too fast, and leaving rational thought in the dust can only lead you down a path with an unpleasant outcome.<\/p>\n\n\n\n<p>Moratoriums in the foreclosure world will be lifted this year. What was once hot will cool but not freeze. With these low rates, get your hands on as much cash as you can and sit quietly watching in the night. <strong>Patience and persistence are two virtues that will never fail you<\/strong>, and if you remain calm, the right deals will present themselves.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Don\u2019t Fall Victim to Seller Bidding Wars I believe anyone of sound mind would agree that the Palm Beach County real estate climate has escaped the boundaries of logic as of late. During my usual&hellip;<\/p>\n","protected":false},"author":22,"featured_media":3181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-3177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-articles"],"_links":{"self":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/comments?post=3177"}],"version-history":[{"count":2,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3177\/revisions"}],"predecessor-version":[{"id":6432,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/posts\/3177\/revisions\/6432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media\/3181"}],"wp:attachment":[{"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/media?parent=3177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/categories?post=3177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propertyonion.com\/education\/wp-json\/wp\/v2\/tags?post=3177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}