Category Archives: Real Estate Market

6 Tips for Buying in a Seller’s Market

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Buying a home in a seller’s market doesn’t necessarily have to mean paying too much, giving in to seller demands, or difficult negotiations. Even when sellers have the advantage, they may still need to work with a buyer to sell their home.

Some homes will often get plenty of attention while other homes may sit because they are priced too high or because of any number of factors that are undesirable to buyers in their market. With this in mind, it’s possible to make buying easier, even when the market favors the seller.

1) Be Firm but Fair in Negotiations

No matter what the seller may be asking for their home, the home still has a fair market value. While the amount the seller may be asking for a home could be a little bit higher in a seller’s market, that doesn’t mean a buyer can’t negotiate the price. Remain firm in negotiating, but also be fair based on the market conditions. A real estate agent can be your best resource to help you determine what your options are when it comes to making an offer.

2) Take a Look at Homes on the Market For a Long Time

Even in a seller’s market, there will be homes that just aren’t as popular as others. These homes will stay on the market longer, and finding out why this is the case, might be the beginnings of a great deal. If a home has a characteristic that isn’t popular with many buyers in the area, but it doesn’t bother you, it may be possible to buy a home in a seller’s market for less than you might expect.

3) Remember, There’s More Than one Location

Location is very important, but there’s generally more than one specific street or area where a buyer might want to live. By looking in several different places you might find the home that’s right for your needs without being completely tied to a location where the sellers may be less willing to negotiate and the prices might be above budget.

4) Find the Motivated Sellers

There will always be some sellers that are more motivated than others. No matter the reason for their motivation, the opportunity exists for buyers to get a good deal on a home they love. It may not always be easy to find sellers that are highly-motivated, but an agent can often help locate sellers who are looking to move their properties faster, and for a lower price.

5) Be Prepared and Ready to Negotiate

One of the ways to get ahead as a buyer in a seller’s market is to make sure your finances are ready. By having a mortgage pre-approval letter and a strong down payment, it’s possible to get ahead of other buyers who may not be as prepared. Sellers want to work with buyers who are serious and have a high probability of completing the transaction without delays.

Not being ready before making offers could mean missing out on a home that would be just right.

6) Don’t Underestimate the Power of Cash

Buyers who pay in cash and don’t need a mortgage to purchase a home often have a better chance being ahead of other buyers in a sellers market. Cash can be very attractive to some buyers, because when it comes to buying a home, it shows a seller that they don’t have to worry as much about a deal falling through because of mortgage finance issues.

When buyers don’t need mortgages, the transaction may be completed a lot faster, too, making it easier for everyone to moving on to the next phase of their lives. Speak to a financial professional to see if this would be a prudent move for your long-term financial health.

While a seller’s market can be a bit tricky to navigate, home buyers should know that with enough preparation and effort, they can find and purchase their dream home without adding additional stress to the process.

By our guest blogger,_KrisLindahl_481224369

Kris Lindahl REALTOR® CRS CLHMS
The Kris Lindahl Team at RE/MAX Results
2407 109th Ave NE Suite 110
Blaine, MN 55449

www.krislindahl.com
twitter.com/krislindahl
linkedin.com/in/krislindahl
www.minnesotacommercial.com

 

Mr. DeMille, I’m Ready for My Close Up

closeupThere is an idiom that has stood the test of time: seeing is believing. And when it comes to spending money, it is a rarity that we ever purchase something based on description alone. Not only do we check on the product reviews of others, but we rely on a visual picture in order to be fully convinced to part with our hard-earned cash. Nothing proves this truer than when it comes to buying property. According to the 2014 NAR® Home Buyers and Sellers profile, buyers rank listing photos as the number 1 most valuable website feature – even higher than the listing’s description! These days, 92% of people looking for a new home rely on the internet to begin their process so it seem only natural that photos are preferred over just a written description. And now that you have found yourself a home to sell, it’s time to get it ready for that photo shoot.

First, you need to speak with your home-owning clients. You have already walked through the home with them, giving suggestions to make things ready for the future showings. Now it is time to give everything some final touches so that the photo shoot goes smoothly. A great tip is to ask your professional photographer (because you shouldn’t be taking the photos on your own) for a checklist your clients can reference in order to get things camera-ready. In fact, this list can also work double-time as a handy tool for those upcoming showing days.

When it comes to the interior of the home, the added touches are all pretty simple. Keep the toilet seat down, clothes in the hamper, toiletries and other personal products hidden from view. One way to give your clients a point of reference is to have a quick tour once a housecleaner professionally cleans the place so everything has a place and the home is picture perfect. As for the exterior, you should have your clients keep the yard clean as a whistle. Keep cars in the garage and/or parked from view, landscaping tidy and trash cans & toys picked up and out of the way. The cleaner the property is kept, the easier it will be for you to photograph and show to prospective buyers.

When it comes to the actual photo shoot, the only proper way to go is with a professional photographer. Find one that understands the business and express exactly what it is that you’re looking for. Before each shoot, show the photographer certain aspects of the home that should be featured in the photos. The more you can show these special features to your prospective buyers, the easier it will be to book showings and, ultimately, sell the home. Build a relationship with them so that you can move through these shoots like a team and make the photos the very best they can be.

After all, a picture is worth a thousand words…

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The State of the Union: Real Estate Edition

state of the unionYesterday, the National Association of Realtors released their quarterly report regarding the statistical news of existing-home sales. It has shown that while we have been on a gradual upswing as of the past three months, our summer season ended with a definite decline come August. Now, this news is not to be taken as bad news; there has not been anything terrible happening in the market. We are seeing definite improvement from last year across the board. However, there has been a stall in the constant increases we’ve been experiencing nationwide.

If we break it down by region, the only one that hasn’t had a change in existing-home sales at all from July is the Northeast. The mid-west declined 1.5 percent, the South was down 6.6 percent and the West down 7.8 percent. These numbers may seem to be cause for concern but all of these regions have an average of a 6 percent increase from last year.

Now these statistics aren’t real estate sales across the board. To be clear, existing-home sales according to the NAR consists of completed transactions that include single-family homes, townhomes, condominiums and co-ops. These sales have fallen 4.8 percent from July, but as a yearly average, they are 6.2 percent above a year ago. I know, it’s a lot of numbers.

Experts are saying that the reason for this stall is a lack of inventory in areas like the South and the West. This has caused the prices for said homes to spike drastically to capitalize on the lack of supply to demand. NAR chief economist Lawrence Yun states, “With sales and overall demand higher than a year ago and supply mostly unchanged, low inventories will likely continue to limit options for those looking to buy this fall even with the overall pool of buyers shrinking because of seasonal factors.” Basically, the lack of new home construction isn’t reflecting the needs of those in various areas. This increases prices, which has been the issue for the stall. Thankfully, the price appreciation for the limited supply of homes have begun to come out of the unhealthy growth rate and started to even out, which is good for the overall sales.

But rather than end this post on a bad note, here’s something to keep in mind as we head into the next quarter: As our job market continues to improve, it will trickle down to wage increases. This will increase homebuilding and improve home inventory, which will continue to slow down price increases. So in the end, it will all even out. Guess we’ll just have to see what the next quarter has in store…

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