We’re over a year into this global pandemic and some trends in the housing market are beginning to emerge. One, homeowners are staying put. Two, many people are looking for a larger home where they can work remotely more easily. These two colliding factors are a big reason why the inventory of homes for sale is at record lows and prices are near all-time highs.
This low inventory situation leads to a very competitive housing market. The homes that are available sell fast – many in just a few days. For buyers, this means you must be more prepared than ever to make a decision, and even get creative with negotiations.
The help of a real estate agent is now more essential than ever. Knowing the local market dynamics, the ins and outs of closing costs, real estate taxes, and more is a huge asset when you’re caught in a bidding war.
The excerpt below from Crain’s Chicago Business highlights one of Sam’s recent negotiations in the Naperville housing market.
From Crain’s Chicago Business
Samantha Bauman came up with a workaround for her clients who were bidders on a house in Naperville that looked likely to go for more than the asking price, which was around $500,000. Some of those deals fall apart when the agreed-upon price exceeds the appraised value, causing lenders to decline to nance the deal.Excerpt from Crain’s Chicago Business: Flowers, wine, cleaning fees: What homebuyers are doing to compete in a super-tight market | February 19, 2021 (source)
Bauman’s idea was to have her clients offer the full asking price, but offer to pay for both the first year’s property taxes and the survey, which are ordinarily paid by the seller.
Thus the sellers would net more out of their sale proceeds at full asking price. Of the 11 bidders, Bauman’s clients won.
Are you in the market to buy or sell?
Working with an agent may even help you find out about homes for sale before they go on the market. This advantage can help you to get a jump on competition. If you are in the market to buy or sell your home, reach out to Sam. She has expert knowledge of the current housing market and will be happy to help you in all of your real estate negotiations.