Market Trends for Chattanooga TN Homes

Things to Expect for Chattanooga TN Homes This Year

To follow up on our previous blog, here’s a few points for trends we’re seeing in Chattanooga TN homes that will most likely persist throughout the rest of 2014. As we stated, the recession is mostly over and things have bounced back, not to where they were during the peak days of the bubble but much better than a few years ago. As a result, homeowners have been able to be more selective with their buyers since the supply of Chattanooga TN homes isn’t keeping up with demand. With the market favoring sellers, competition among other home buyers and proper negotiation will be one of the primary factors in determining the difference between a successful transaction and missing out on a golden opportunity.

Buyers Still in the Market for Chattanooga TN Homes

Chattanooga TN Homes

There’s a couple of factors contributing to these current conditions. First, there are buyers on the market from 2013 who have still not committed. That overflow of buyers adds up to a small segment of “boomerang buyers” whose homes were unfairly foreclosed and are now back as buyers due to new FHA laws. Along with new buyers for 2014, these populaces add up to a small storm which in turn makes things harder than they may have been a few years ago when everyone was trying to sell. Buyer demands that may have worked in the past will almost certainly be less effective now, so be careful when asking the seller for too much.

Work With The Best

With Chattanooga TN homes rising in value, new mortgage laws restricting lenders, and a slew of other buyers to compete against, finding the perfect home can be difficult without proper representation. Call Nathan and Charlie Walldorf at (423) 544-7700 if you have any questions. We’re here to help you get the most out of your time and money, whether you’re a potential buyer trying to negotiate successfully or a seller looking to maximize the value of their home.

How to get in the game with Chattanooga’s March Real Estate Market

“We’re not in the recession any more Toto.”Chattanooga-median-home-sale-prices-2014-year-to-date

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.

Sellers:

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.

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