We often hear about the slowdown in the real estate market, it’s a Buyer’s market, the excess of inventory and getting homes for a “steal”. Is it still a great time to buy? Of course! Interest rates are still low and banks are continually presenting new products making home ownership a possibility for many. However, in recent months we have seen the return of BIDDING WARS!!!
When the market took a nose dive, you could project a great home in a fabulous location would sit on the market approximately six months to a year. Gone are the days of waiting for a price reduction to bargain your way under market value. So what has changed? Do consumers really have a more positive outlook on the economy? Are Buyers less afraid of the financial commitment that comes with a new home? Are real estate agents are more realistic with their pricing? And are Sellers are more realistic in what they are asking?
Lately we are seeing the real estate market return to its competitive nature. A well-priced home has the potential to produce multiple offers in a matter of days, even hours - not months like years past. We are seeing less “low-ball” offers, rather highest and best in the first shot knowing that the property may not be available the next day.
So what does that mean for those thinking of Buying or Selling?
- BE PREPARED – If you are Buying, have your Letter of Pre-approval, Pre-qualification or Proof Of Funds in hand! Sellers do not want to waste their time if there is any financial uncertainty with the Buyer. For Sellers, put your best foot forward. Make sure your home is as appealing as possible, clean and clutter-free. First impressions are the most important!
- EDUCATE YOURSELF – This is where a qualified real estate agent comes in. Know what is happening in your own neighborhood and your neighborhood of interest. What has sold recently? What condition was it in? Were there any external factors? Are there any assessments, current or upcoming? The more you know, the more confident you will be in making or accepting an offer.
- BE REALISTIC – Are there still great deals out there? Absolutely!!! As long as your expectations as a Buyer are reasonable. Can you expect to get a Foreclosure for half price (as we have been asked almost daily)? Confidently, we can say no. And are Foreclosures and Short Sales the only bargains to be had? Again, no. Foreclosures and Short Sales are rapidly coming up to market value, creating even more competition. For Sellers, there may be great emotional attachment to your property. Have your real estate agent run a thorough Comparative Market Analysis. If the numbers come out lower than you expected you can’t take it personally. A Buyer is not going to pay more because a Seller thinks their home is fabulous. If you are not willing to price your home realistically, you will end up sitting with it on the market for an indeterminable amount of time. If you are looking for the most bang for your buck, have an educated agent by your side.
For more information on Buying or Selling real estate in Jupiter Florida and the surrounding communities, please contact David Shockley and the Waterfront Elite Team.