Real Estate, It’s a Whole New World . . .
Gone are the days when you head out to look at homes over the weekend and buy one. You can certainly still look at the less than two to four homes that meet your parameters, but if you are fortunate enough to feel that one of them is the right match, you must be more than ready to understand all the complexities involved with writing a winning offer in this market. On the other hand, if you are ready to sell, heck, you could post your home on Instagram and sell it “by owner” in about an hour. Finding a buyer for your home is currently not the challenge. The challenge is first determining whether you should sell, and then second, ensuring you have maximized the value of your home knowing that there may be that one buyer who is willing to pay you well over the appraised value. The only way to find that buyer is to have great representation and professionally merchandise your home.
Bidding wars and shrinking inventory are not a new phenomenon. However, in the past, bidding wars typically happened only on the best homes, in the best areas, and buyers could still “shop” other communities and price ranges over time. There was inventory coming and going and not every new listing would create a frenzy. Today, every time a new listing hits the market, there is excitement and anxiety, if not a bit of depression, caused by the reality that if it looks like a winner and you want to buy the home, you likely have a less than 50% chance of winning the home even with an amazing offer.
With the lack of inventory, it may seem that there is not a lot of preliminary work to be done. However, we advise all our buyers to be fully prepared. Shop, see every home, even if it is not a match. Get your money in a liquid account. Don’t simply get pre-qualified, get pre-approved. Don’t pick a mortgage lender no one has heard of, but rather, connect with a local provider who is respected and known for performance. You cannot be over prepared to submit a winning offer when the right property for you hits the market.
For sellers, it is easy to sell right now, but the real question is where will you go? What is your replacement investment? Will the market continue to appreciate? Are you leaving money on the table? This is an important life strategy decision. Home ownership, for most, is not only a roof over our heads, but a major investment and part of our long-term financial security. Today, our role is quite different than in previous markets. We at ELEETE Real Estate want to make sure you have an “end game” for where you are going before you sell. It is our mission to provide our clients with the data needed to make good decisions and then to ensure that we capture the maximum value for your property. While market indicators can clearly illustrate what your logical home value is, we are out to find that one buyer who is willing to pay you a premium as your home fulfills their dream.
In the past we had to figure out how to sell your home and then could shop from hundreds of homes for sale for your next investment. Today, it is all about education, preparation, and making sure you have a great plan.