Remembering the Wild West of 2004: So happy it's in the past

Remember the golden days, when house buyers overpaid for many properties, buying them without home inspections, and losing future appreciations through incredible escalation clauses? In today’s Washington Post, the real estate section revisits that time – we thought, with a little too much glee.

Remember back in 2004-2006, when little inventory initiatated escalation clauses, created blind bids made buying seem like the Wild West for new homeowners?

Skyrocketing home prices in the mid aughts benefit no one. Home sellers received higher prices, but diminished buying power for their next home. Home buyers got into new homes with very little money left in their pockets. We realtors earned more in commissions, but lost out on volume.

Happy customers are always our best customers.

The Post story hinted the days of multiple offers are retunring – a little bit – in high-interest markets like Falls Church and Reston. The story cited that reasonably–priced and slightly-undervalued homes were receiving high interests, and multiple offers.

In this market, multiple offers means three to five – a far cry from the 12 to 20 nearly any home in any category would receive 6 years ago. In these high-intrest markets, competitive bidders might be expected to waive inspections, but not to offer buy backs. This market is not nowhere near as competitive as a decade ago, in part because the inventory is more plentiful.

Two themes of the story are two tenants we’ve always preached to our clients:

1. If you’re selling, price your home fairly and draw the best immediate interest.


2. If you’re buying, and you really want the house, make your best offer – first.

Did you buy a home during the escalation clause? Are you pleased now with your home? Tell us about in a comment below!