The No. 1 tool on your side is knowledge, and the more prepared you are before placing your home on the market or placing your first offer, the more likely you are to get your desired outcome.
Migration to Arizona has been strong and it lands in the Top Five on UHAUL’s migration growth list. Buyers in our area have been able to sell homes in more expensive areas and can afford to pay cash about 50% of the time. Baby Boomers are very attracted to the Quad Cities area, while the Millennials are edging them out to be the largest homebuying demographic in our state and nationwide.
Nationally, there have been 13 straight years of below-average building of new homes. We have not made up for or matched the pace of building during the last boom. We do need to build more homes to increase the supply, but it won’t be done fast enough to be the complete solution. Shortages in skilled labor, increases in the costs of building supplies and the length of the entitlement process contribute to how quickly developers can add supply to the market. The National Association of Realtors posits that to get back to a six-month healthy supply of inventory, an additional 2.7 million homes should be on the market for sale.
There is a foreclosure moratorium in place until June 30, and whether that will be extended is a subject of much discussion. There are about four million borrowers behind on their mortgage payments, but banks are working with many to add overdue payments to the end of their loan. Borrowers that can’t qualify for this type of loan restructure likely will be able to sell their homes at a profit, as equity has climbed in the past few years. As more of these homes come on the market and as vaccines ease sellers’ hesitancy to have buyers visit their homes, we do expect a balancing of supply and demand to occur.
How does a buyer succeed in this market? One way is to have a strong local agent on your side as sales do occur prior to hitting the general market. Know what you are looking for and be prepared to look at a home quickly and decide whether to place an offer. Buyers in a competitive market need to go in strong and fast to not miss an opportunity. Get advice on the risks in waiving home inspections and appraisals as ways to sweeten the deal. Too much sweet can promote different aches and pains in the process, and a skilled agent can help you cap your risk.
If you are a seller, the highest offer is not always the best offer. An experienced agent can be your best asset in negotiation during a market that moves fast. This professional can help you weigh which offer is most likely to get to closing date and this can be absolutely critical if your next home purchase relies on the sale of your current home.
The No. 1 tool on your side is knowledge, and the more prepared you are before placing your home on the market or placing your first offer, the more likely you are to get your desired outcome. QCBN
By Leslie Guiley
Leslie Guiley is the co-founder of Better Homes & Garden Bloom Tree Realty.
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