In a dynamic market buyers have a lot of competition. If you are of the mindset that you don’t want to get involved in an “auction” environment then you might as well plan on sitting on the sidelines for a while. You can modify your purchase parameters to the extent that your objective is so esoteric that others aren’t interested in the type of properties that you are, or jump in with an active agent and work for your goal.
Transaction costs are often paid in customary manners, i.e., title insurance, escrow fees, real property transfer tax, home warranty, etc. Sometimes offers get separation from the pack by adjusting these fees. In a buyer’s market sellers can be asked to pay fees they wouldn’t otherwise pay, i.e., home warranty fee. In a seller’s market the opposite can be true. This is an area where buyers and sellers achieve a comfort level by their past experience, or worse, the experience of their neighbor or friend, but it is essential to not lock up here.
Seller pricing of property in a dynamic market is as varied as the number of sellers in the market. Some follow the online value generators and swear by them. Unfortunately, they are extremely inaccurate, high and low, depending on the property and timing. Excitement in the market can generate a lot of emotion which can lead to charged decisions.
Prices can be too high, too low, or terms too demanding, but who knows for sure when the market has so much energy? Talk to your agent about what is happening, what might happen, and how it could affect your sale. These days some properties get priced so far forward when listed they generate laughs by agents when they appear in MLS … until they close at that price or higher. The art is to determine what may be achievable and what is unrealistic.
The escrow process has been affected by COVID and the high volume of property sales and loan refinancing that is going on. One change from your prior transaction will be the need for a definite time for signing. You can’t just stop by when convenient these days. Time in the escrow is very critical these days as lenders, inspectors, appraisers, etc., are all very busy and are seemingly squeezing in every new order. Keep this in mind for your timing.
You might be used to a “standard” 30-day escrow for a purchase with a new loan, but that can be difficult to achieve today. You should adjust the timing so you don’t breach your contract. Breaching a contract in a rising market can expose you to a seller rescinding and selling for more money to another party. Doesn’t usually happen, but it could and you should prevent all negative possibilities.
What happens after the sale is complete is also different these days. Does the seller have a place to go to or are they doing what is becoming commonplace, moving into a fifth wheel until they find a place? Sellers often ask for time to move after the close — more so and longer than usual, but is often palatable to buyers for their hunt for a home is over. Be ready for changes here whether a buyer or seller.
Real estate agents have a lot of experience in varying circumstances. Their experience and knowledge will help you adjust to the transaction at hand so you compete in the current market. Spending time with your agent will help you match your expectations with reality. Build a good foundation with your agent so you are ready to act with confidence when the right buying or selling circumstance arises.
With well established wants and needs you will find it easier to adapt from your past real estate experiences. All will fit well when you know what you can live with.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, 775-781-3704. dpwtigers@hotmail.com