November 2013 Market Update

Above is a photograph of a home that I recently helped my buyers get into contract. Listed by R. Kriss

As we head into Thanksgiving week, we are seeing fewer new listings on the market. Having 3 homes go pending over the last two weeks this is my summary of the market:

  1. Homes in prime neighborhoods with good light and layout that are priced competitively are still going pending with multiple offers, often over the asking price.
  2. I do not recommend shopping for homes at or above your budget ceiling.
  3. Remember list price does not necessarily equate to the ultimate sold price, I have seen properties receive offers over the asking price that the seller declines. The seller has the right to decline any offer and I have seen sellers hold out for a specific price. Asking price can mean the starting price of an "auction", it can be too high or it can be just right. It is best to work with your agent to get a better sense of value.
  4. I am still seeing "move-in" ready properties needing approximately $25,000 of repairs that the buyers are taking on.
  5. Your lenders role is huge!  With many cash offers still in play, to compete your lender needs to have a solid reputation of closing deals with a hyper-local appraisal management company behind them.  This marketplace is still competitive.
To better understand this market as you are actively shopping in it, here is your homework:
Make a list of homes that you loved, (not like, but really felt a strong adoration for). Track the list price and sold price and  find out if there were major repairs needed or flaws with the property.  This way you can really understand the market.  Unless your budget is limitless, you will have to compromise on room count, neighborhood, upgrades or repairs. (Your agent can help you with this) Happy Shopping!