Last week was a BUSY week for our buyers and sellers. In fact, it was the busiest week we have had since June of last year. It is very clear to us that the bottom of the market has passed. Given the lack of inventory, we anticipated the market would begin to move quickly, so we encouraged sellers to follow our lead and list their homes. Hats off to those who did.

Here’s what we learned last week:  

Pre-Emptive Offers
One of the offers our clients accepted last week was a pre-emptive offer. We listed the house at 9 a.m., and by 7 p.m., we were in contract.

• Not setting an offer date requires buyers to move quickly in this market if the right house surfaces.
• Buyers, if the seller will accept an early offer, this may be your shot to get the house of your dreams before the market sees the house and reacts. You may be overpaying slightly, but you will never know and will quickly forget when you are happily settled.
• Sellers, if you will not question if you made the right decision, accepting a strong early offer may be the path for you! Your home will sell to someone who loves it at a strong price, and the process will be over quickly. You, too, can move on with your life.

 Multiple Offers
One of our listings had three offers last week, with 22 agents requesting disclosure packets. Here are a few pros and cons of multiple offers in today’s marketplace:

• Multiple offers help us to negotiate and ensure you land at the highest possible price the market will bear for your home.
• Multiple offers do not always equate to wild sales prices.
• Multiple offers are much more likely to occur when you price below the perceived market value of your home. However, this may be too risky in this market, so discuss this with our team.
• Multiple offers can raise a red flag for buyers who are weary of competition and driving the price of a home higher.
• Listings are hitting the market quickly, as they often do at this time of year. If another good house hits the market without an offer date, you may lose a potential buyer to another property.
• Buyers, don’t shy away because of competition if you love the house. Know your price threshold and rely on our team to help you negotiate appropriately.

Sale Prices

• Strong sale prices are occurring when your house meets and exceeds the needs of the buyer pool it has attracted.
• We are not yet seeing record-setting prices, but we are seeing homes sell within 10% of the market high.
• Strong sale prices happen when buyers have been forced to wait for inventory in their price range or in a sought-after area. If this is the case with the house you are looking at, rarity matters, and high sales prices will occur in any type of market. 

Offer Terms

• Cash is king! Sellers continue to take the bird-in-hand cash offer, often at lower prices, as the security of cash with the recent bank failures, is paramount!
• If there is competition, buyers are still forced to waive all contingencies to win.
• If there is no competition, we are seeing some financing contingencies.
• Lending qualification matters and is looked at closely in this market.
• The pattern for the length of close ranges from 25 to 30 days.

Seller Thoughts

• Follow our guidance and present a home in near-perfect condition (our staging will make it hip and appealing).
• Remember why you are moving and look forward (looking backward becomes emotional).
• Price your home fairly.
• Trust the process! 

Buyer Thoughts

• Be prepared to act quickly.
• Understand your financing and go through the underwriting process. The more qualified you are, the better your odds of success.
• No house is perfect.
• Trust our guidance.

Negotiating five properties in one week gives us unprecedented insight into the local real estate market. I can say with confidence that the knowledge we obtain gives you a powerful advantage over others if used properly. Our team of experts is here to answer your questions and guide you!

Dana & Team