All things real estate: Be a smart buyer or seller in tight market

Seeking the assistance of a top-notch Realtor, who will be there to help and guide you while answering all your pertinent questions as well as going through a checklist of your specific needs and wants will go a long way in your search for that elusive home. However, with fewer choices available than ever before, your broker or agent should discuss which trade-offs you might be willing to forego while looking at homes and narrowing down your wish list to comfortably stay as much as possible within a specified budget without going overboard. We all have a certain amount of money in mind and are qualified for what we want to spend while seeking out the best possible deal we can.

Since it is still a seller’s market, however, with prices still edging higher, one must be very realistic and have the clearest possible vision of what will satisfy the equation in order to consummate a purchase. But even in this low inventory market, overpricing by sellers still does occur, because sometimes they feel that the market will pay their price and there are occasions when a buyer comes along and has to have that home and they might pay a higher price than most. However, this isn’t the norm and seller feelings generally are not relevant to market value.

A buyer should always ask for comparable sales of similar properties for the previous six months before making an offer to ascertain a certain base price of where homes have sold. If a broker is representing a buyer as a buyer’s agent and after comparable are provided, the buyers can ask their opinion when determining an offer as to whether the offer is low or a good starting point — unless in certain situations, the offer given is at full asking. If the selling prices are within a certain percentage of asking prices, then that would provide an accurate insight as to where the selling price could be, but there is never a guarantee.

Sellers would like to get the highest price they can and if priced correctly (sometimes just a speck below market value) it will create greater activity leading to a potential bidding war for that particular home. I have experienced this method of pricing. Generally, the more days on the market (D.O.M) the greater the possibility that the property was and currently is overpriced. We all can be a little greedy, but overpricing becomes more detrimental to the seller in the long run, since the longer the listing stays on the market without a price adjustment, the greater the chance that it will sell below market value. There are a multitude of factors that go into the listing and selling price. The overall condition of the interior and exterior is tantamount in figuring a selling price. If a home is in mint condition, then comparable should be as close to mint or diamond as possible. If it is in excellent, good, or fair condition, then one must have similar properties to compare it to. My suggestion is always to find a house that needs work on a very good block for those that are open to this concept.

Topics: Real Estate Investment, Seller-Buyer, COVID-19

Work cited: Philip A. Raices, The Island Now, August 03, 2020

If I can help in any way please let me know, [email protected]. Stay Safe & Healthy.