Not only is the market dynamic in terms of pricing, the multiple offers, offers over asking, moving interest rates, high values, online information, coming soon offerings, etc. make for an exciting time to buy and sell real estate.
Those coming late to the show are still looking for the Podunk pricing they used to see when our Northern Nevada markets were compared to their urban real estate markets, but they are finding that like those coming to town looking for “a cabin with trees and a stream for $50,000” that we saw in the 1980s and 1990s.
High prices is a fact of life at this time. Multiple offers are something that must be dealt with. How you compete with other offers is an art form that your agent must have experience with to make you competitive. Some buyers write emotional letters trying to separate from the crowds. Interesting enough, there are some attorneys that are advising agents not to present them due to a possible Fair Housing violation. It really isn’t in your best interest to rely on your personal plight to get noticed.
Offer the highest price you can and make your offer clean, as few conditions as possible. Shorten the time frames, but make them realistic. You don’t want to time yourself out of a deal and have the seller rescind and take another offer.
Sometimes an Acceleration Clause is used, to assure you are the highest price. Such a clause provides that the buyer will pay over the highest other offer, i.e.- $1,000, up to a maximum price. This is another area where some lawyers feel it is not legal while others say it is. If your agent suggest using one be sure they ask the listing agent if they will accept an offer that contains one. If they are of the “no go” ilk your offer will be doomed from the get go if you include one.
Interest rates that were stable or falling for many months are now bumping up incrementally, one tick at a time. Three ticks in the last week. Get your loan going or you could lose buying power. Example: if it goes up one half of a percent on a $300,000 loan to 3% from 2.5% the PI payment difference is $81.45 monthly, 3.5% would be a $161.77 monthly swing.
These rates are still amazingly low, but their changing can have an affect on prices. Demand is still high so it might be awhile before such rate changes impact the market, but regardless, you will be paying more for the same product if you aren’t expeditious in your buying efforts.
Nearly all (97%) of the buyers today look online first to begin their buying process. If you aren’t online fine a way to get there, or make sure your agent is working diligently on your behalf to locate a home for you. Agents get busy with many things in these markets so it doesn’t hurt to tickle them to remind them that you exist. They will like that you are loyal to them and should be working hard to reward that loyalty.
If you find a place online, call your agent. If he isn’t available and you are anxious call the listing agent directly and be sure to advise them you are working with an agent. The professionally will respect your candor and allegiance.
Don’t fret about competing in this market. Your agent can help you navigate the stormy waters of the “perfect storm” real estate market successfully. Somebody will buy the house you are targeting, it might as well be you. If you miss it then realize that one more of your competitors is out of the market place increasing your odds of getting the next one. It is a mindset. Don’t give up, get going! Be clear in your wants and needs and you will attract the right property to your awareness. Stay focused.
Keep focused on your wants and needs, adjust as needed to adapt to the market, don’t compromise, and let your agent consider multiple dynamic market factors and offer procedure details. Get updated on those when they can affect your wants and needs or buying viability. Your agent should help you with market understanding, awareness and perspective. You, too, will be a homeowner soon. Be sure to have fun along the way for you will be laughing at these times down the road.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. email@example.com