What kind of market are we in now?
We are in a Gamblers Market~
With inventory low and interest rates at an artificial low, it is important to look at the market closely around you before making any decisions.
Every seller wants top dollar for their home. And with inventory low, the opportunity of a lack of supply and high demand makes pricing a home at the highest point very tempting. Though if it sits for more than 20 days, it will tend to sell below market value.
We are finding sellers that price their homes at or just below market value, are getting multiple offers and properties are selling cash over appraisals. Though keep in mind, if you price it lower, you must be willing to sell at that price if you don’t get multiple offers.
Thus, the gamble~
In the Puget Sound and Greater surrounding areas, the market still has pockets where homes are getting multiple offers, though the shift has already started. We are seeing homes stay on the market longer, even if priced well.
Buyers are still buying though are very concerned about overpaying for homes as they do not want to be caught buying at the peak of the market like they did in 2007-2008, as that stung hard. They also want their offers to be appreciated as many buyers have more money down. I would pay more attention and appreciate these buyers more.
During the holidays, it is a better time for our higher end sellers. It is Corporate Relocation time where our companies are hiring and sending out their new hires to buy homes. They want these new employees to settle and “stay.”
In the lending world, where we stopped seeing 0 (zero) down loans, except our respected VA buyers, we have seen the return of down payment assistance programs and buyers again being able to buy homes with little to no money down. These are not bad buyers though these buyers need to plan to live in their homes for a longer term to endure another downturn cycle.
Banks are getting fatter and are willing to gamble more with their investors’ money. To me this is a dangerous sign and another indicator of a shift in a negative direction.
With that, it is important to pay close attention to what the market is doing around you.
Always hire a Real Estate professional. A Realtor that is experienced in many markets and understands what is trending. A Real
tor that is in the Top 10% of Sales and is connected to the Top Producers. There are multiple facets of marketing a home which includes timing, condition, pricing, area influences, and location. Pick a Realtor, not just an agent. A Realtor is held to a higher code of ethics. See my Blog about “How to choose a Realtor.”
In conclusion, these are changing times. It is important to look at all angles.
It is a Gamblers Market~