We’ve all heard the expression, “Less is more,” but what do I mean when I say the reverse?

We’ve all heard the expression, “Less is more,” but what do I mean when I say the reverse? 

If you’re a buyer out there, there are a few things you’ll want to know about our current market. Inventory is about 40% lower than it was at this time last year. Interest rates are almost a full percentage point lower than this time last year. So there’s a massive amount of demand but simply not enough homes out there to satisfy. 

When a great home does hit the market at a fair price, multiple offers usually drive its price up. The home buying process is all about removing the emotion and creating as much certainty as possible. For example, speaking with a lender and knowing what your monthly payment will be creates certainty and gives you more confidence as a buyer. 

“My clients were comfortable paying a little more to secure a highly sought-after home now, knowing that it would go for more money the next time it’s sold on the market.”

To illustrate my point, here’s an example: There was a property in Irvine and my clients absolutely loved it. It was one of the only 4-bedroom properties in the entire city, and, since my clients needed four bedrooms, the demand in this equation was very, very high. 

This property was listed for $750,000. After we looked at what other similar homes in the area sold for and did the math, we felt as though $770,000—maybe $775,000—would work. Ultimately, we came in super strong and got the offer accepted at $780,000. 

My clients admitted to feeling as though they paid too much for the home—a sentiment I do understand. However, a couple of weeks later, the exact same home model came onto the MLS at $790,000 and, after receiving tons of offers, went under contract just shy of $800,000. 

This is where the ‘more is less’ mantra comes into play: My clients were comfortable paying a little more to secure a highly sought-after home now, knowing that it would go for more money the next time it’s sold on the market. 

Though they offered more, they’re still paying a lot less than the next person in line who tried to get the same type of home. Alas, more is less! 

If you’re thinking about buying or selling, or you have any topics for me to cover in my next video, please reach out to me via phone or email.