After decades of average growth in Eastern Idaho, around 3% is what a homeowner can expect to gain on an annual average basis. Recently, it seems as though our market has exploded, causing home buyers to line up literally outside of newly marketed homes. With monthly increases in values close to annual averages causing a sense of unrest, maneuvering through the complexities of an overactive market is a huge challenge for both buyers and sellers.
Our community has a sudden and growing need for housing and projections show the growth is here to stay.
Understanding the dynamics and psychology of the other side is rather important for a successful transaction. Not all sellers want the highest offer and not all buyers want the cheapest house.
Sounds crazy right? Let me explain a few things about the process that are often overlooked.
While the assumption is that sellers only care about top dollar is understandable, it is not always the case. There are so many moving parts to a real estate transaction: lender, inspector, appraisal and contingencies.
Has the buyer seen the property in person?
Is the lender local or national?
Does the buyer have representation by a qualified individual?
What loan type is the buyer obtaining?
How much earnest money is offered?
If directed properly by a licensed real estate professional, a buyer can do many things to make their offer present better without forking out loads of cash. It is imperative that a buyer, in an aggressive market such as this, choose a realtor carefully. The dynamic of this relationship can make or break a deal and mutual trust is an absolute must.
Buyers are often paying well over asking price on properties. Multiple offers, escalation clauses, appraisal and inspection waivers are enough to make someone’s head spin. Understanding a seller’s obligation and responsibilities when listing and negotiating multiple offers can overload even your Google search. The psychological frenzy of competing to get an offer accepted can wreak havoc on a seller’s bottom line when it comes to the secondary negotiation on inspection repairs.
Buyers will often play hardball on their requests after a higher than list offer is accepted. What one might consider savings when going at the sale of real property flying solo, might just cost you some cold hard cash in the long run. From valuation to potential appraisal pitfalls and repairs, knowing what is headed your way next in a transaction can alleviate concern for all parties. Experienced real estate professionals have the road map to a successful conclusion.
The Multiple Listing Service (MLS) is a powerful tool for everyone. Syndication to numerous websites, places a property in front of buyers. Buyers on the flip side now have access to an MLS property from all over the country and in some cases the world. Choosing to use this tool can make searching for a home far less daunting with up-to-date adjustments and pricing. “Back on the market” listings are more visible and accessible to the buying public and sellers can be assured that those active and serious buyers are seeing what is necessary to inquire and make an offer.
The higher the visibility of a home, the more qualified and serious offers will be generated.
At the end of the day, buying and selling a home should be a beneficial process for all parties. Going at it with the right tools is the only way to secure a successful transaction for both buyers and sellers.