We are part of a Top real estate agent mastermind group from Lee and Collier county whereby several top agents come together to talk about current issues in the market. At last week’s meeting we talked a lot about inventory levels and how top agents are handling offers as well as a variety of other things.
Here are some conclusions that came out of that top agent mastermind. In other markets across the country where inventory levels approach the 2–3 week supply of homes, buyers are being forced to make offers with no contingencies to win the bid. When we say no contingencies, we mean no financing contingency or inspection contingency. In other words, when the buyer signs they are not backing out over financing, appraisal issues, or inspection issues.
If a buyer is getting financing and the home does not appraise, it would require the buyer to pay the difference in appraisal price and purchase price plus their agreed upon down payment for the loan. There is an exception to this whereby the buyer may qualify for a lesser down payment option, but in either event the buyer must be in financial position to put more down. This weeds out some of the buyers, which is OK when you have multiple buyers bidding for homes like we do today.
This brings us to highest and best. The definition of highest is bring your highest price. Best means bring your best terms. Buyers today are winning out on not only price, but maybe more importantly the terms. Lastly, relationships matter most in this market. Top real estate agents know who the other great agents are. This is important because they know their buyer has been counseled appropriately. While an agent cannot be judged on how their buyer will act, we do know that better agents do a better job counseling their clients. Who you work with matters in this market, both on the buying and selling end.
The mastermind group also talked about pricing strategies for sellers. Many sellers do not realize that property values are changing by the week. If sellers really knew what their property was worth, they might think again about how tied they are to the property they are living in. Does your property fit your needs or are you settling because you have lived there so long? With today’s prices, you may not have to settle.
Many sellers honestly don’t know where they would go if they sold their current home they don’t love. There may be more solutions than you know. Sales in the last year are rising even as inventory lowers. While we may not have as much current inventory, we are getting enough to satisfy more buyers, it just goes quickly. If we know in advance what would make you move, we can call you when we run across your next home even before it hits the market.
Creating Our Own Market
Imagine home buyers bidding on your property while you find an off-market home that hasn’t been listed yet. This requires a massive database, and at the Ellis Team we have a database of people who might make a move if the right situation came up.
So, we ask you, is there a price at which you would sell your home with only one showing? We might already have your buyer. Is there a home that if it came on the market would make you want to move? We might already have that seller.
We should talk! Call Sande or Brett Ellis 239-310-6500 and we will see if we can make your dreams a reality. This is the market to do it, so do not let this opportunity pass you by. Or visit www.SWFLhomevalues.com to get a free instant price for your home. It will even email you each month your new home value.
Good luck and happy home shopping!