If you have been listening to the news recently, you have probably heard that it's a great time to buy real estate. Interest rates are at historical lows, prices are down, and inventories are up.
So, armed with this information, you go out with your local real estate agent and find a house. As you prepare to write up an offer you remember what you heard on the news this morning: "It's a buyers market, inventories are high, home values are declining." You tell your agent that you want to make a low offer.
Is this always the best approach?
The answer depends on the situation.
What everyone needs to understand, is that the buyer's market that is being reported is looking at a very broad picture. When you break down the information for you local area, you may be very surprised at what you see. There can be, and frequently are, several different markets within a local area.
This is the situation in the Metro Atlanta real estate market. We have some neighborhoods that are seeing a buyer's market and a seller's market at the same time.
You are probably asking, "How is this possible?". The answer is simple. Look at the number of days that a property has been on the market for both active listings and recent sales. If it is less than 6 months, you have a seller's market. If it is more than 6 months, you are in a buyer's market. If you break the information down by price ranges, you see areas that are selling much faster than 6 months and those that take much longer than six months to sell.
So what does it all mean.
When you are writing an offer, having this knowledge of the local market will help you to make the best offer with the highest chance of being accepted. If you know that homes price between $50,000 - 75,000 are selling in 36 days at 103% of the list price, you may reconsider making an offer at 90% of the asking price if you want to have the best chance of success. After all you are probably not the only buyer making an offer.
How do I know what the best approach is. Simple. Ask your agent. They have all of this information available to them.
Remember, just because you saw it on television or heard it on the radio, you may need the rest of the story.
CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330 | Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com | |
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