Is it a bubble???

March, 2022:    My radio show listeners constantly are asking "is this a bubble?"  No, far from it, this is pure supply and demand - and the Remote Worker Phenomenon (which will be written about 500 years from now as an event that changed landscapes across the world) turned a very bright spotlight on the northern Michigan area for all the reasons we already knew - beautiful landscapes, great recreational opportunities, great arts, a vibrant food scene, orchards and vineyards spreading to the horizons - oh, and no fires, earthquakes, hurricanes or tornadoes. Great schools, low crime, small towns, delightful lakes.  And 20% of the world's fresh water supply all around you, with beautiful beaches.  The only thing that used to kill you when I was a kid growing up here was bordeom - and now they've gotten rid of that! 

So, yeah everyone wants to live here, now.  For all the reasons that spell happiness and contentment.  Did I mention the picture perfect autumns and the postcard winters?  Have you seen the hills decked out with their gorgeous blossoms for three weeks every May? 

So, no. It's no bubble. The supply is waaaaaay behind the demand. How does that play out?  Well, in this market if you're a Seller, you should absolutely have a bidding war.  I started creating bidding wars back in 2015 (to the chagrin of other agents at the time).  It's a great way to sell houses for maximum results.  It's easily done but the real art is in conducting it to the delicate win/win of highest $$ and minimum issues.  I've seen badly conducted sales that have cost Sellers hundreds of thousands of dollars. Seriously.

If you're a Buyer, you've got to have a firm, well orchestrated plan and a Realtor with connections, someone who can get your bid to the front of the line - and be kept in the loop all along the way.  You are allowed to laugh at this - but I tell my Buyers: don't be afraid to pay next year's price, because next year, you're going to look like a genius.  Not everyone gets that.  It sounds just plain foolish to cautious ears.  To that crowd, my follow up question is "help me understand your motivation, here - are we trying to come in fourth or fifth with your offer?"  If you pay 10% above what you think it's actually worth and then the market rises by 18% that year (which has happened in both 2020 and 2021), that leaves you way ahead of the game AND you've got the property you really wanted!  In a worst case scenario (you buy in exactly the wrong year and appreciation drops to 5%) within three years, you're still ahead of the game AND you've got the property you really wanted!  In July of 2020, I sold a house for $1.3 million and another nearby for $1.35 million where both Buyers said "I know I'm a fool but life is short and I'm tired of tire kicking".  I could sell either one of those places today for $1.8 million.   A fool?   Far from it.  Plus they've had the pleasure of life every day, gazing out at that water, those sunsets, enjoying a house they love in a setting that sings to them.

It took me a long time to get old. And just as long to get wise about what really matters.

I'm proud to have been in the top 1% selling Realtors in America for over 20 years, now.  And I can't adequately explain how sweet the benefits are that come with 33 years of treating people right.  It makes every day a mostly wonderful walk in the park as deals get done in all directions and happy clients pile up.  It wasn't always that way as I learned the nightmares about what works and what fails in this business. 

If you're a Buyer or a Seller, give me a call and, pretty quickly, you'll be able to decide if I'm just an entertaining  writer, LOL - or if I actually am one of the best in the business.  If we decide we'd like to work together, you'll enjoy the experience and the results.

231 995 0000  Office

231 883 7444 Jack's cell 

Tune into: Ask the Real Estate Guy! with Jack Lane on WTCM AM-580 or by going to www.wtcmradio.com and clicking "listen live". It's a highly entertaining hour about northern Michigan goings on, the Detroit Tigers, local and national history, economics, the weather, a multitude of back stories about northern Michigan and -- oh yeah -- occasionally, real estate.  Saturday mornings, 8 to 9.