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I'm sure that you have heard that the market is hot right now, here in lovely Idaho! What does that mean? That means that homes are selling quickly if the price is right! What does that mean for you? It depends on who you are.
Buyers in a hot market:
Home buyers in a hot market are faced with a challenge. It isn't impossible to find a home, but it may be difficult to get an offer accepted once you find the right one. There are less homes available, and lots of people are out looking for and buying homes right now. This presents a couple of challenges for you home buyers out there! So what can you do to combat that? Here's a few items to keep in mind:
1. Pre-approval from a lender: If you aren't using cash, pre-approval from a lender before you go looking at houses and find "The One" is super important right now, and it can make or break you when it comes to making an offer. Those who make and offer on a home and can submit a pre-approval letter with that offer look a lot better than those that don't. A seller is more likely to choose your offer over the others if they know you are serious and can close the deal. This is an important first step, and is especially important in a market like what we have right now.
2. Be prepared to have a multiple offer situation: This is happening and it can get a little crazy. You submit your offer only to find out that you weren't the only one. Be diligent and be reasonable. Make sure you are making the highest and best offer you can if you really want the home. This is no time to try to get a deal. Now it's a competition! You want to make sure to have a conversation with your realtor about not only what you can afford and are approved for, but also what the home is truly worth. A good realtor can do a market analysis on a home and make sure that you don't over pay for a home. The worst situation is when you get into escrow, and you beat the other buyers, get an appraisal, and find out the home didn't appraise for the purchase price! What a nightmare for both buyer and seller! Don't overdue, but certainly don't under do it either. You might miss out!
3. Don't wait if you think you found a home you want: I know buying a home is a huge decision, but you can't afford to wait if you think you found a home you want to offer on. You always want to make sure you do your due diligence and research, but there isn't time to wait around and think about it. If you think it's a good decision, make an offer. Don't wait until tomorrow because tomorrow might be one day too late! I've seen this many times, and they always regret it. Make the first move before someone else beats you to the punchline. You may not get a second chance!
Sellers in a hot market:
This is your prime time to sell! There's hardly anything else available right now, and you have a chance to sell at a great price. Prices are going up, and it's an ideal time to stick your home on the market if you have been thinking about making a move. However, there are some things to consider. It isn't always as easy as asking what you want for the home, putting a sign in the yard, listing it with an agent, marketing, and accepting the offers as the come in like a storm. These are some of the things to take into account for selling your home:
1. For sale by owner: You may be thinking that with the market so hot, you don't need to spend that extra money on a good realtor. You can do it all yourself, especially with so many options for marketing out there on the internet. That may be true, but there are some important points to consider. A realtor is a professional who not only markets your home, but does it right, and is there for you when it's time to negotiate. Not only that, but they provide you with helpful information and tips and tricks to help the sale go as smoothly as possible. They want to help you, and they will "earn" their well-deserved commission if they are good at their job. Doing things yourself is great in this day and age, but there are so many things that go into a real estate transaction, and so many things that could go wrong. Having someone professional help you is going to go a long way, and will save you both time and money in the long run. Not to mention you have someone advocating for you! Just because you can be your own legal Council in court doesn't mean you should! Even lawyers have other lawyers represent them in court. Definitely something to think about! Not only that, but buyers with agents will look at you and your home as a viable and safer option if you have realtor representation.
2. Pricing: It isn't just about looking at the homes around, coming up with a number and getting that price or above. Just because the house down the road sold for over asking price, doesn't mean yours will. There are a lot of factors involved, and a good realtor will coach you about the right price to list your home at. List too high, and you run the potential of racking up market time! This is bad news and can end up costing you money! The longer your house sits on the market, the more potential buyers will pass it by or wait until you price it so low that it's a great deal. Too low, and you might be missing out on some extra cash you could have made. Your realtor is your best friend when it comes to pricing, and listening to what they have to say is key. It's hard to price your own home because biases do happen. Your realtor is an outsider looking in, and they are the best tool for this job!
3. Multiple offers and getting over asking price: This is a huge thing to consider! It may sound like an amazing thing for you. It's like taking an old item to auction and watching the bids come in. You are getting way more than you thought you would and that is exciting for you! Be diligent when it comes to these offers, look at all the scenarios with each buyer. Is it cash? Are there contingencies? Is it a loan? What type of loan do they have? Are they pre-approved? How much earnest money are they putting down? These and so many other factors are a lot to take in, and your realtor can help you in making the best decision. Greed can be a downfall in a transaction. Don't just go for the best offered price, it could spell disaster. If it is a loan, the house is subject to an appraisal, and it may not even appraise at that higher price. You might end up still getting less than they offered, and sometimes they can't negotiate cash out of pocket to make up the difference. Make sure you have this conversation with your realtor! It's essential to look at all offers with an open mind and find the best deal that is feasible for your unique situation. The best one that has the highest chance of closing the deal without issues is your best bet. It's not set in stone. You'll still have inspections, appraisals, and potentially a bank to work with. These can all be factors that can make it go great or horribly wrong.
4. Expect the unexpected: Make sure you've run through your home and made it not only aesthetically pleasing and cleaned up, but also that you have fixed any potential issues that could come up. You probably know the little quirks and issues your home has. Try to fix as many things as possible, because more than likely, if you have an issue, a buyer's inspector will find it, and they may request it to be fixed any way. It could hold up the deal and it could be something that they require a certain professional to fix. This could end up being more money out of pocket than originally intended. You want to make the sale of your home as smooth as possible for both you and the buyer.
If you enjoy my blog or want more info please contact me anytime. I'm also happy to give you tips and tricks for selling or buying a home, and I would love to work with you to sell your home and/ or help you buy your next one! Contact me today!
My name is Jacki Rekow, and I'm a realtor here in the Treasure Valley in beautiful Idaho. I have lived here all my life, born and raised, and can honestly say that I don't think I could find a more ve....
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