Guest Blog by Terin Merriman
Chances are even if you’ve been living under a rock – which at this point, aren’t we all? – you’ve heard how hot the real estate market is. Like an early 2000s Paris Hilton quote, the real estate market is “so hot.”
Record-low interest rates, an influx in buyers, and low inventory have created the perfect storm for sellers. If you’re curious about how to prepare and position yourself for a real estate transaction in this market, then this blog is for you!
Make a Fair Comparison
Sellers will find that the cards are inevitably stacked in their favor. Even so, you still need to prepare. Pricing is everything. You’ll want to review your neighborhood comps. What properties have recently sold near you that are similar to your home? What was their sales price? This is where your real estate professional comes in. Properly priced homes have proven to sell quicker. It shows buyers that the seller is serious and knowledgeable of the current market. The last thing you want to do is make a buyer feel as though you are price gouging them. Aside from possibly turning away prospective buyers, overpricing can pose a number of other issues such as the home not appraising for the contracted price. The last thing you want to do is renegotiate the price mid-contract.
Be Smart About Your Budget
Buying in this market can undoubtedly be challenging; however, don’t be discouraged! The current interest rates may be the boost you’ve needed to become a homeowner. Here’s how you can still win in a market that isn’t exactly working in your favor: Getting prequalified is a must! Not only to lock your rate, but also so that you are prepared to write an offer immediately once you find the
right home. Chances are, if you wait it could be under contract by the time you finish your pre-qual. Know your budget and consider looking at homes priced $20,000-$100,000 under that budget so that you can have room to negotiate and offer higher in order to win a potential multiple offer scenario. Don’t be sparing with your down payment, sellers see higher down payments and/ or
earnest money deposits as a sign of a very serious and invested buyer. And last but not least – be aware of what contract items are absolutely necessary, such as your home inspection. Many homes are selling without the protection of a home inspection contingency right now due to the competitive market. Are you handy around the home? Or maybe you have a handy parent or family member in which case you could consider doing your home inspection for informational purposes only or waive it altogether. There are many elements of a contract that you can use to make your offer stand out beyond just increasing the sales price.
Ask Your Agent for Exclusive Info
Are you worried about high traffic through your home? Or are you concerned about visiting homes during the pandemic? Coldwell Banker Elite has an exclusive certification for agents to better serve clients during this health crisis. Did you know that some homes are selling before even going in the MLS? This can be beneficial to both buyers and sellers. Getting your home out there in front of people creates interest as well as exclusive information for buyers on homes that will be coming on the market. Coldwell Banker Elite has over 250 agents and as an agent myself, I’m confident in saying we have an unmatched network of tools and resources to not only sell homes but to find our buyers the right home even in a unique market such as this.
What are you waiting for? Let’s do this!
By Terin Merriman, Realtor