It is May 2018 and the market is in full swing! Listings are coming on and off the market quickly, many sellers are getting 99.1% of asking price, and inventory remains low, thus driving multiple offers in most price ranges! In the midst of it, many of you have had questions about the ‘nuances’ in today’s market. Here are just a few of the most common questions …. and answers:
Q1: Why are Homes Coming Back on Market?
Your neighbor waved from the driveway and shared the good news: there is an offer on their house! Yet a few weeks have passed and no SOLD sign has appeared? What happened to the sale? There are a few explanations: buyer financing fell thru, home did not appraise for the sale price (more common when multiple offers drive up the price), failed inspection, buyer learning of upcoming assessment not previously disclosed, or contingent offers not coming together.
Q2: Are Contingent* Offers Coming Back?
Yes! Sellers are accepting offers contingent on the buyer’s home selling. This actually may help with the low inventory hurdle our market is facing – if a buyer can feel confident they have secured their next home, they may be more willing to list their existing home. Contingencies are currently also seller-driven! Sellers are putting their homes on the market and selling “contingent on seller finding a home of their choice.” In this scenario, details need to be negotiated such as how much time a seller has to find a home, what to do if he/she not find one, closing dates, timing of inspection, etc. *NOTE: We are not referring to more common contingencies such as inspections or financing.
Q3: Has My Home Value Increased This Year?
Very likely, YES! In fact, if you had a market analysis done prior to April 2018, it is time to revisit your numbers! You may be pleasantly surprised at what this market has done to increase your home’s value!
Q4: Are Cash Offers Winning Over Traditional Financing?
Cash offers are much more common right now but are not necessarily what will win over a seller. Does it eliminate a need for a lender’s appraisal? Sure! But winning offers have as much to do with other factors like the flexibility of a closing date, offer price and inspection terms, to name a few!
Keep the questions coming! This can be a crazy market and the more you know the better you can navigate through!