The real estate market acted a little funny though still very busy up to March of this year. Lately, home buyers have been out and buying rapidly.
The funny part of the market has been with 1st time home buyers not buying much in January and February. Mid to upper range buyers have been buying homes. As people have filed their taxes, they seem to be looking at homes in all price ranges again.
There have been less closed sales in March (22.5% less), but much of that has to do with a continually decreasing amount of homes for sale. The monthly supply of inventory of homes for sale has decreased by 36% between early 2011 and the end of March. Fewer homes are equaling few sales lately. That also produces more competition for few homes which ends up in a 9% raise in the median home sales prices this year as well as sellers getting an increasing percentage of the sales price compared to what they have gotten in the past.
What does that mean to a home buyer?
That means that you can’t make a rock bottom offer on a house as your first offer like you did 1 or 2 years ago. Home buyers are still trying to play that game. When you make a low offer, you open the door for another offer to come in while you are negotiating and either have to get in a bidding war or loose out to the higher offer without a fight. You are much better off making a fair offer than to trying to drastically cut the price. If you like a house today, you have have to negotiate to get the house quickly instead of dragging out the process and putting your offer in danger.
I just read something else that is very true in Realtor Magazine on-line. You also can’t renegotiate and renegotiate the price as you get into inspections. If you demand and demand concessions, the seller may cut you loose. I just saw it happen in North Chattanooga. The seller had already done $5,000 or repairs after the inspection, and the buyer wanted moor repairs. Finally the seller let the buyer go, and the house was under contract “as is” 6 days later with no repairs being asked for. The 1st home buyer lost out on a great opportunity that the 2nd home buyer capitalized on.
You are in a much better place to sell your Chattanooga home. Prices have been going up for the past year, there are less homes to choose from, and you may be able to get the money out of your house that you need to have. It is worth calling agents like Nathan and Charlie Walldorf (423-544-7700) to see if you can get what you need out of your home. Give us a call. The market is good, and we’d love to help you sell your home quickly.