So, what do prospective buyers need to do to get the home they want at a price they can afford?
Not only is home inventory flying off the shelves, the median price buyers paid was $417,615, which is 22.7% higher than in 2020. Most of the area’s sales – about 40% – were homes priced between $400,000 and $700,000, with another 37% of home sales in the $200,000 to $400,000 price range. Home sellers in Dewey-Humboldt and Chino Valley experienced the largest increase, at 7% more sold than 2020.
Across the board, the largest increases occurred in land sales. Chino Valley was at the top of the list with a 24% year-over-year increase, or 118 sales of land. All other areas in the region reported an increase of 20% to 24% except Prescott Valley, which experienced a 4% increase.
What’s Going On?
Although the Quad Cities region has enjoyed a healthy real estate market for some time, what is the impetus for such dramatic numbers? For one thing, new homes are not being built at the same rate, curtailing available housing. Supply chain delays for new home construction, coupled with labor shortages during this time of COVID-19, have driven more buyers to existing homes. Not only are there limited additions of new homes to the area, but prices are reflecting the higher cost of hard-to-find building materials.
Consequently, buyers have to act fast, and prices are higher than in recent years. So, what do prospective buyers need to do to get the home they want at a price they can afford?
How to Navigate Buying and Selling
Step one is to obtain the professional services of a realtor, because you will need an expert to navigate this unprecedented environment. These days, it is a must to work with a skilled realtor, who, every day, has the most up-to-date information on home inventory and understands the nuances of the local market and individual neighborhoods.
Step two: Because buyers will most likely have to make a purchase decision quickly, be ready! Get pre-qualified, and know your must-haves and what you’re willing to compromise on. Additionally, getting pre-qualified helps you know what you can afford so you can focus and not waste time when house hunting in this swirling market. Take advantage of your realtor’s knowledge to help you bid competitively.
Also, be prepared to tour homes virtually. With as fast as the market is moving, and many homes receiving multiple offers shortly after listing, you may need to take a virtual tour if you can’t see the home right away in person.
And, finally, make sure you understand the contracts and other documents you need to sign when purchasing a home or even just putting in an offer. Having a knowledgeable guide – like your realtor – by your side will give you peace of mind, whether you are a buyer or a seller.
As a seller, there is other important language in the contract to contemplate besides the dollar amount of the offer because the highest bid is not necessarily the best offer. Many factors should be considered such as the closing timeline, type of financing the buyer is using and contingencies, all of which will be stated in the legal documents.
Putting up a home for sale is an emotional experience for many sellers, which can make the entire process feel like being on a rollercoaster. After all, it’s hard not to take things personally when you are selling a piece of property that has meant so much to you and your family.
On the other side of the table, buyers may be on their own rollercoaster. This may be their first home or the place that finally brings them closer to their families. A realtor is objective and can help sellers and buyers keep their focus on the goal of completing a home sale on mutually acceptable terms and making the experience as painless as possible.
To find a realtor, visit paar.org/find-a-realtor. QCBN
By George Beitzel
George Beitzel is a local realtor and the 2022 President of the Prescott Area Association of Realtors (PAAR). For additional information or to contact PAAR, go to paar.org.
