Things might be returning to the more normal state of affairs in the Real Estate world…. the days of low-ball offers (6% + below market value) being accepted are becoming a thing of the past, and multiple offers are no longer a rarity. Foreclosures in Cache Valley are on a continual decline, and the foreclosing banks are no longer giving the properties away.
What does this mean…?
Well, sellers don’t get too excited yet… you still have to base your home value on market conditions (not what YOU THINK your home is worth), your home will still have to meet appraisal values if it goes under contract, and buyers are still cautious about over paying, but please don’t let yourself be talked into listing at the bottom of the market, and don’t feel obligated to accept the first offer that comes in if it’s a low offer. Let your Realtor negotiate an equitable price – and if equitable terms can’t be met, don’t feel desperate. If your house is in good condition, it will sell for a reasonable price in a reasonable amount of time. If it’s not in good condition, let’s get it in good condition!
Buyers – it is a great time to buy! The affordability is still fantastic because prices are still good and interest rates are great, but don’t expect a “steal”. Expect to make a reasonable offer, and yes – unreasonable offers can and do offend sellers. If you want a particular home make an offer based on market value, not what an infomercial real estate guru says you can get a home for. Even foreclosures and short sales are receiving multiple offers. Let your Realtor do some research on the history of the property as well as what the value is based on similar properties that have sold. Make an informed… and I’ll use this word again – REASONABLE – offer.
The Real Estate market is entering a situation of balance – not a buyers market, not a sellers market … a reasonable market.
- ‘We don’t want … low-ball offers’: CMHC firm on hiding foreclosure information from buyers (business.financialpost.com)
- Home Buyers Are Back, but Where Are the Houses? (cnbc.com)