The Real Estate Market has gone crazy!

Thursday Mar 16th, 2017

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The Real Estate Market has gone crazy!

It’s been steadily going up for the past while quite dramatically but now it’s a whole different ballgame!   Some people are getting waaaay over their asking price!  Why now you ask?  It is definitely driven by supply and demand.  People seem hesitant to put their homes on the market causing an extremely low inventory.  The result is there are far more buyers than listings which is driving the prices crazy.  It’s not unheard of to get 5 or more offers per listing.  Once Buyers have been through the process of losing out a few times on homes they really wanted to purchase, they show up determined to be the successful party—aka, more $$.  This sounds like a dream to the Sellers but of course, like all things, sometimes it’s too good to be true.

At the same time prices are climbing at an all time high rate, banks are more stringent than ever on mortgage approvals.  They are insisting on appraisals to determine the current market price of those homes.  Appraisals are based on sale prices of comparable homes that have sold and closed.  With the market moving as fast as it is right now, these appraisals don’t exactly reflect today’s prices—maybe 2 month ago prices.  Therefore, those appraisals can come in too low for the Buyer to get the mortgage they need to close their transaction.  Unless they can come up with a lot more cash to satisfy the mortgage requirements, they won’t be able to close.  You can imagine that this causes all kinds of chaos.  Most Sellers, with their firm offer in hand, go out and purchase their new home to move into.  If the sale of their home falls through, which usually happens well after the deal firmed up, the ensuing problems can be extremely stressful.  Can you be confident this won’t happen to you?  Yes you can.  You need a competent Sales Representative who knows the questions to ask at the offer table to ensure that no matter what, your deal will close.  It is not always the highest price that should get the deal.  As tempting as it is to take much more money for your home, it is the offer that has a good price and is assured of closing that should be the successful party.  I know all the questions to be able to determine this on behalf of my Sellers so they can be confident they won’t be faced with trouble down the line.

Does an amazing sale price for your home sound appealing to you?  Maybe someone you care for or work with is thinking about selling.  Give me a call to talk about what you may expect get for your home in today’s market:) 

25+years in Real Estate—Experience Matters, especially when we are working in challenging markets!

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