Real estate prices are on the rise across the country, and typical buying practices won’t bring it down, as many sellers receive multiple offers.
Buyers and sellers in the Belleville area have been impacted by a lack of housing inventory, and there is no clause that will guarantee your offer will be accepted.
However, there are steps you can take to improve your odds and set yourself apart from other sellers’ options, real estate professionals say.
Here are some tips from a New Baden-based real estate agent on how to make an offer, as well as some industry insight on prime time selling.
ShCould you wait to buy now?
Angie Zahn, licensed realtor and chief broker, said Belleville is a tough market for buyers right now as most parts of the country favor sellers due to supply and demand issues.
“Since it’s a supply and demand issue we’re having, prices are off the charts,” Zahn said. “We’re just in a weird, weird time. I have been selling real estate for over 30 years and have never quite seen what we have now.
Zahn said a unique factor in Belleville’s housing shortage is that the city is in the middle of the season for military families moving near Scott Air Force Base.
Despite the challenges posed by low supply and high demand, Zahn said she would still recommend buying now because things could get worse for buyers.
“Right now, with interest increasing, and expected to increase again, it’s always a good time to buy,” Zahn said.
The interest rate on a 30-year fixed mortgage is up to 5.37%, according to data from the Mortgage Bankers Association. The number has risen 0.17% over the past 10 days and 15-year fixed mortgage rates have not been spared from the increases.
How can buyers make competitive offers in this market?
Buyers’ approaches have had to change due to the seller’s market making their highest bids outright, as many sellers are considering multiple offers at once.
Those looking to buy may also need to submit pre-approval letters from lenders with their offers, ask for fewer extras, and waive inspections in some cases.
“A lot of the market analysis I do now, it looks like homes are sometimes selling for $10,000 or $20,000 or more of what the comps are showing,” Zahn said. “That’s all, except giving away your firstborn. It’s pretty much like that.
Rising home prices have hurt buyers not only by forcing them to make compromises they wouldn’t normally make, but also by creating valuation gaps that prevent them from obtaining financing.
Lenders will only offer the lowest appraisal price, Zahn said, and with Belleville homes selling for $10,000 to $20,000 more than normally expected, some sales fail because buyers are unable to bridge the gap between what appraisers say the home is worth and what sellers are asking.
“I try to educate my buyers a bit so that they don’t take it personally when the 14th seller says ‘no’ to you, that they’ve accepted another offer, and that they don’t get discouraged about it. idea that you find the right home,” Zahn said.
For those ready to brave the market to buy, Zahn said she recommends getting a pre-approval letter, submitting your highest offer, and working with a professional real estate agent to manage your expectations. .
While it can be easy to get caught up in the excitement of the buying process, Zahn said buyers should make sure they’re making good financial decisions by working closely with their lender and getting an agent’s advice on potential return on investment.
How can you navigate the offers as a seller?
To avoid alienating buyers, Zahn said sellers should prioritize making sure their home meets legal requirements for government funding.
If you’re interested in selling your home, Zahn said you shouldn’t tell anyone you want to sell until you have a plan for where to go. Your home could sell under your feet as potential buyers bid after viewing and even unseen.
Once you’ve received multiple offers, Zahn recommended weighing the terms of the offers on the table, including the monetary offer, the financing plan, and any stipulations such as a valuation gap or canceled inspections.
“Sometimes it’s not about the money. Sometimes these are the best conditions,” Zahn said.
Flexible closing dates are often considered, and now is the time when sellers can be picky to get the most convenient sale possible.