A Real Estate Market in Flux

January 23, 2013
A real estate market in flux is a real estate market fraught with frustration. A few years ago when the real estate market was entering a downturn, sellers and listing agents were frustrated by (1) lack of offers, (2) offers way under the list price and often under the appraised value. Today it is the buyers and the selling agents who are frustrated. About six months ago buyers could write offers below the listed price and have some hope of receiving a counter offer or of having their offers accepted by the seller. In the 2013 real estate market, buyers need to consider writing offers above the listed price and still be prepared for rejection. Other buyers either wrote higher offers with stronger financing or all cash offers or even offers with no contingencies. Oh my goodness - how times have changed!
As I posted a week or so ago, if you seriously want to purchase a home in the current real estate market, make an appointment with a lender. Obtain a pre approval letter complete with FICO scores. Make a copy of your bank account. Offer thee very best price that your lender has approved. Be prepared for a wait before hearing back from the seller. Realize that the seller may not counter and you will not have a chance to increase your offer.
Frustrating. Yes. Prices are on the move, buyers cannot look back as times they are a changing.