How Many Make a “Meteor Shower?”

What’s a “housing market meteorite?”

Like the celestial kind, they burst onto the scene in a brilliant flash of light; descend (in price) through the night sky (housing market) quickly; then just as quickly disappear (they’re sold).

They often have these three additional attributes:

One.  They’re top-to-bottom (bottom-to-top?) rehab’s;

Two.  They’re vacant (goes with #1).

Three.  They’re owned by investors who are bottom-line oriented, and will relentlessly cut the price until the property sells (goes with #1 and #2).

Buyer and Seller Responses

So, what should other market players do in response?

If you’re a Buyer looking for such a property . . . act fast.

Meanwhile, what should nearby, “non-meterorite” home sellers do while such a property flashes through the sky?

Watch, just like a real meteorite.

That means sitting tight (vs. cutting their price to compete) — and hoping that the nearby house sells quickly, for a good price.

“Comp” — or Not?

Post-closing, will such a property be a “Comp” (comparable sold property) for nearby homes?

It certainly passes the “recency test” (closed in the last six months — ideally less).

However, to be a genuine comp, the sold home must still be similar in size, style, and condition.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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