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BUYERS NEED TO BE PREPARED AND THE TIME IS NOW!

10/21/2021
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With mortgage rates climbing above 3% for the first time in months, serious buyers are more motivated than ever to find a home before the end of the year. Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), puts it best, saying:
"Housing demand remains strong as buyers likely want to secure a home before mortgage rates increase even further next year."
But the sense of urgency they feel is complicated by the lack of homes for sale in today’s market. According to the latest Existing Home Sales Report from NAR, “the inventory of unsold homes decreased 13% from a year ago.”
With buyers eager to purchase but so few homes available, sellers who list their houses this fall have a tremendous advantage – also known as leverage – when negotiating with buyers. In today’s market, buyers want 3 things:
To be the winning bid on their dream home.
To buy before rates rise
To buy before prices go even higher.
These 3 buyer needs give homeowners leverage when selling their house and sellers are using that leverage to help them negotiate the best terms.
Since buyer demand is still high, there’s a good chance they’ll be in a multiple offer situation competing for the home. Buyers today need to have solid offers and by that it doesn’t mean just the price or the highest offer. It also means buyers can negotiate the best terms by offering the seller the best perks to suit their needs.
Speaking of price and terms, escalating offers have led to appraisal issues. Home buyers are bidding up home prices as they compete for homes. But appraisals don’t always agree with the offer the seller finally accepts. Some homes are appraised below the agreed-upon sales price, which could upend a deal. 23% of contracts were delayed due to appraisal issues, according to the latest REALTORS® Confidence Index Survey, based on a survey of real estate professionals’ transactions and about 12% of transactions were then terminated due to appraisal issues.

Many buyers are stretching their budgets to win a bidding war. But mortgage lenders will usually only offer a loan amount for the appraised value of a home.

Appraisers usually factor in recent closed and pending sales to determine the value of a home but home sellers complain that appraisals aren’t keeping pace. Buyers may waive appraisals to make their offer in a bidding war stand out even more to a home seller but they’ll have to come up with more money on their own for the difference between the appraised value and the purchase price.




Forecast

The supply of homes for sale will greatly affect where prices head over the coming months. Many experts forecast prices will continue to increase, but they’ll likely appreciate at a slower rate. A slight moderation of home prices does not mean prices will depreciate or fall.
Price increases may occur at a slower pace, but the experts still expect home prices will continue appreciating through 2022.

If you’re a buyer waiting to enter the market because you’re expecting prices to drop, you may end up paying more in the long run. Even if price increases occur at a slower rate next year, prices are still projected to rise. That means the home of your dreams will likely cost even more in 2022.
Bottom Line

The truth is, high demand and low supply are what’s driving up home prices in today’s housing market. And while prices may increase at a slower pace in the coming months, experts still expect them to rise. If you’re a potential homebuyer, let’s connect today to discuss what that could mean for you if you wait even longer to buy.

Want to know …
How To Get The Home Of Your Dreams In Such A Highly Competitive Market?




WHAT YOU SHOULD KNOW ABOUT SELLING YOUR HOME IN THIS MARKET

10/21/2021
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WHAT YOU SHOULD KNOW ABOUT SELLING YOUR HOME IN THIS MARKET


Yes, it’s a hot seller’s market with lots of buyers but that doesn’t mean it’s an easy job for agents right now. It’s actually quite the opposite. The market has more challenges and is trickier right now than most people realize.

Truth is - There are many offers some of which may appear to be good but are not solid contracts and run the risk of falling through or fall apart all together leaving you to start all over again & buyers wondering why the home didn’t sell? 11% of all contracts fell through this year? That’s HUGE!

There's also been an abundance of poorly written contracts recently. If by chance you accept one of these contracts, it could end up costing you the seller a great deal of money if you do not know what to look for!

My expertise is negotiation. I’m RENE certified. (Real Estate Negotiation Expert) Negotiating a solid contract and preventing potential fall throughs caused by low appraisals, inspections require skill and experience. Not all agents have the expertise & skill to get you there.

I'll share with you how to make your transaction smooth and successful and get you through it more effectively and profitably than someone else can.

Who you work with matters.

My best,
Neal
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