Market log 2022
APRIL 1, 2022
HOME SELLERS
While it is a seller's market because available home inventory is low, sellers are frustrated by the unprecedented number of offers received, trying to decipher the wildly divergent closing terms and the rush to make decisions. It's certainly possible to get a good, strong offer that will make it all the way to the closing table, but price isn't the driving factor on which offer to accept.
Here's a short but complex list of all the factors that must be considered when comparing offers:
- due diligence days
- lender quality
- earnest money
- financial contingency
- appraisal contingency
- escalation clause
- closing terms
- price
Sellers can retain some control by pricing the property appropriately and having a plan for each scenario that could impact how long they can stay in the home.
Our best advice for sellers in the current market: Get your Realtor on board with planning for every scenario you (and they) can imagine. You'll be much better equipped to choose the right offer.
APRIL 1, 2022
HOME BUYERS
No matter what the Super Bowl ads suggested, being the first offer on the table doesn't make it more likely to be accepted. If a buyer feels strongly that they want to offer a so-called "love letter" explaining why a they deserve to win the home, we will provide the fair-housing guidelines to follow for the letter. We don't encourage buyers to write them.
The choice of lender matters a great deal, because a preapproval letter is not the same thing as getting the loan, and experienced Realtors know which lenders to trust. Online lenders have less than desirable reputations because those deals often blow up, and big banks have trouble getting deals to close on time.
Our best advice for buyers in the current market: don't expect to have your offer accepted -- you may make offers on multiple homes before you win. Do expect to pay more than list price, and have a plan for what you can reasonably and confidently offer in a price-escalation scenario.
MARCH 16, 2022
HOME SELLERS
Solid plan necessary.
March 16, 2022
HOME BUYERS
Don't expect your offer to be accepted.
MARCH 16, 2022
HOME SELLERS
Solid plan necessary.
March 16, 2022
HOME BUYERS
Don't expect your offer to be accepted.