US Southwest Realtors have kicked into gear during the first quarter of 2016. With prices on the rise, a great inventory of homes to select from and tax returns in their buyers’ hands there has been a bevy of activity in the real estate market.
Real Estate values in the Bullhead City, Fort Mohave and Mohave Valley markets continue to experience increase in sales price and a steady number of home sales. Our local real estate market continues to rise as the average sales price was $181,553 with 213 homes selling during the 1st quarter. This is the highest average sales price our market has seen in 5 years. For homes that sell, owners can expect an average of 95 days on the market with an average list to sell ratio in the 95+% range. Interesting enough the list to sell ratio in our local markets has held at 95.4-95.7 during the past 5 years. Amazing real estate recovery in values as the average cost per square foot has rocketed from $77.00 ($134,813 avg. sale price) in 2012 to $103.00 ($181,553 avg. sale price) during the first quarter of 2016. Buyers and Sellers, these numbers are just averages and all homes are different when it comes to amenities, condition and location making a huge difference in pricing.
So what does this mean to the home buyer? Buyers hoping to find that “smoking deal” continue to struggle with the fact that homeowners are sticking with their prices. Homes that hold all the cards when it comes to condition and value are experiencing multiple offers. Frustration and aggravation is the emotion that many are feeling as no one likes to miss out on their home. So how do you leverage your chances of getting your contract accepted when you find the home of your dreams?
- Make sure you have met with your local lender and have your pre-qualification in hand. A local lender has a relationship with your REALTOR and understands the challenges when it comes to appraisals and is a champ when it comes to the types of loans that are available in our market.
- Put your best foot forward when writing your offer with your REALTOR, we don’t know if there will be a second offer presented at the time yours is. You may not get a counter offer. Keep that 95.7% number in your head as a point of reference.
- Don’t give up! Your REALTOR is vested in your success and will coach you through the game of finding and buying and ultimately get you HOME.
In a rising real estate market with historical low interest rates it is important to keep in mind that it may not be the financial deal your friends found 5 years ago, but it very well may be the financial deal your friend’s wish they had 5 years from now! Best of all you will be the proud owner of your home.
So what does this mean to a Seller? Don’t “Shoot the Messenger” your agent must present all offers to you.
- Try not to be disappointed in your buyers’ first offer, remember, they love your home. Be disappointed in all the other buyers that did not send you an offer.
- Keep in mind that the average list to sell is just the average. Your motivation is the key factor when selling your home. Many times the market you are moving to is rising in price faster than your buying dollars. It could make more sense to take the offer at hand and get on to the next home before that market prices you out.
- Don’t give up! Keeping your home in that “Kodak Moment” can be a huge challenge but will pay off in the end. Your agent is committed to getting your home sold and with a good strategy it will happen!
When selling your home it is important to keep your eye on the goal which is to get moved. Agreeing to seller concessions including paying some of the buyer’s costs or a home warranty is more common in our market than your friends know. Keep in mind that the Zestimates do not have all the details; they have the sale price but not the terms. Our market is up 57% in price from 5 years ago. Pat yourself on the back and get a sold sign in your yard!
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