The Rusted Merry-Go-Round Market
Translation. 36 buyers just threw their hands up in defeat. Quite possibly for a 2nd, 3rd or 9th time.
This is a market of winners and losers.
Sellers who sold for $100,000 more than their wildest dreams. Sellers who sold and didn’t have to repair that basement leak or repaint that Dora The Explorer themed bedroom. Sellers who sat back and reaped the rewards of their market timing.
So yes, the Sellers are (typically) the winners.
Meanwhile, the buyers have done everything they were supposed to. The down payment is in place. The deposit is accessible and ready to be transferred to the listing brokerage.
They have their needs, wants, don’t need and don’t want list in place.
A home comes up that matches their criteria and budget. Even at 10% over asking, they’re good!
“Good news. You’re only offer #4!”
Update: you’re 1 of 7 offers.
Another Update: you’re 1 of 12 offers.
Yet Another Update: Wait….quick note to let you know you’re 1 of 21 offers.
Are You Serious Update?: OMG! Another 4 offers just came in.
Please Stop Update: I don’t know how to tell you this, but there are 32 offers…
Spoiler alert. These prepared, ready-to-go, qualified buyers are the losers in this scenario because some buyer (or several buyers) will come along and pay a price that is so unglued from realistic that it’s borderline comedic.
But what if there’s a middle group. They’re not Sellers or Buyers nor are they Winners or Losers.
Let’s call them “The Unknowns”.
These are the people who would be willing participants if they knew how to jump in.
Let’s go back in time…
If you went to grade school before playgrounds were made less lethal, you’ll remember the dreaded (and typically rusty) merry-go-round.
Remember the apprehension you had when walking up to it? “How do I even get on this thing!?”
“The Unknowns” know that feeling very well.
The idea of jumping onto this rusted deathtrap is near impossible.
"And let alone when I get on, I’m likely going to get knocked out, trapped on it or worse, throw up on my classmates!" …part of the reason we referred to this medieval machine of terror as “The Barfmobile”.
When applied to the Niagara Real Estate Market, this middle group are standing before the metaphoric barmobile, unsure about what to do.
They are seniors who may have stayed in their home a few years longer than planned (COVID locked them in place). They are people in homes who need more space or who want to get closer to a school or workplace.
They are a couple who want to get from their multi-level detached home into a condo apartment or townhome.
Lifestyle change. Work change. A change in family. Households merging. Living with senior parents.
“But we can’t afford these prices?”
“This market is crazy! What are we even going to buy?”
Translation. How are we supposed to get on this rusted death machine of a market?
And that is where the unknown part of “The Unknowns” comes in.
They are locked in place because they don’t know how to get on the merry-go-round. They don’t know the reality of the big picture of the market. They likely don’t have a grasp on all of the numbers. The purchase, the sale, the net gains and the financial big picture.
“Wait, if we start running with it, reach out with our left hand and get our timing right, we can do this!?”
So yes, a lot of people in this middle ‘unknowns’ category would be able to jump on. They just need to know what those important first steps are.
And the good news is that once onboard (or in the market), armed with a plan and coherent strategy, you won’t get knocked out or trapped or …well, we can leave the analogy there. :)
If you’re standing in front of this rusty, intimidating merry-go-round of a market and are looking for some guidance, we’re here anytime.
We look forward to chatting with you.
Patrick, Jim & Vicky.