Tag Archives: Current Market Conditions

What Is A Seller’s Market?

A seller’s market happens when demand exceeds supply. When there are more buyers, but real estate inventory is low. Since there are fewer homes available, sellers are at an advantage. We have definitely been in a Seller’s Market for many months now.

In a seller’s market, homes sell faster, and buyers compete in order to score a property. These market conditions often make buyers willing to spend more on a home than they would otherwise. Therefore, sellers can raise their asking prices. Furthermore, the increased interest means that buyers rarely have the power to negotiate and are more willing to accept properties as-is.

Due to the shortage of housing, these conditions often lead to multiple offers. During these bidding wars, buyers will make competing offers and drive up the price, typically above what the seller initially asked for.

Tips For Buyers

 Whenever there is a low inventory of houses on the market and an abundance of buyers, timing is crucial.

Act fast: If you find your dream home during a seller’s market, you will have to act fast. If you hem and haw over a house you want to buy, you may find that it’s no longer available by the time you make an offer. You should get preapproved for a loan ahead of time, so your financing is in order when you need it.

Know that you’re at a disadvantage: When it comes to making an offer, keep in mind that you’re the one at a disadvantage. A seller’s market is not the time to try to push contingencies, concessions, specific closing dates or repairs. Focus your attention on what’s most important to you. If there are certain stipulations you want written into the contract, think hard about whether they are worth losing the property over. If you can make an all-cash offer, you should. Sellers prefer buyers who are willing to pay in cash because they don’t have to worry about the deal falling through due to issues with financing.

Be patient: If you find that you keep losing out on the homes you’re interested in, it’s crucial to be patient and not get discouraged. Many buyers end up suffering during a seller’s market because they get frustrated. Inexperienced buyers caught up in multiple offers will often offer more money than a home is actually worth – or they feel comfortable spending – in order to get the home they want. That’s always a mistake.

Don’t settle: On the flip side, some buyers will end up making offers on homes they otherwise wouldn’t be interested in because they’re tired of losing out. Remember, buying any property is a huge investment and often a 30-year commitment. Don’t settle on a home just because it’s cheaper. Unless you have to move immediately, it’s a much better idea to wait it out and resume your home search after the market cools down.

Tips For Sellers

Since sellers must compete to attract buyers in a seller’s market, it’s helpful to know how to increase interest in your property.

Clean and organize: To begin, make sure that your home is in good condition and has been cleaned and organized before you list, market, or show the property.

Price fairly: Even though homes tend to sell for more money in a seller’s market, it still helps to price your home fairly. If you set your asking price at or slightly below fair market value, you are likely to attract more interested buyers. Some sellers choose to list their homes for slightly less than the assessed value in order to encourage multiple offers.

Carefully consider offers: It’s even more important during a seller’s market that you carefully review the offers you receive. Sellers are often so focused on choosing the highest offer that they fail to examine the financial strength of each buyer. Just because buyers say they’ll pay a certain amount for your home doesn’t guarantee they’ll actually be able to obtain those funds. Lenders will not allow buyers to borrow more than the assessed value of your home.

The last thing you want is to accept an unrealistic offer and be forced to put your home back on the market when the deal falls through. The longer your home is on the market, the more questionable it will seem to buyers, and the more power they will have when negotiating. For ALL these reasons, is why you need an experienced real estate agent.

Ensure preapproval: For any buyers who require financing, you should ensure that they have been preapproved for a loan. Preapproval requires that buyers’ finances and credit history are verified, making it far more likely they’ll ultimately be able to obtain a loan for a specific amount of money. Prequalification, on the other hand, is just an estimate of buyers’ finances.

Be aware of contingencies: Also, be on the lookout for offers that include contingencies. Offers that include stipulations, like mortgage contingencies, home sale contingencies, appraisal contingencies, and inspection contingencies, enable buyers to back out of sales contracts if certain conditions aren’t met.

Is It A Buyer’s Market Or A Seller’s Market?

In the North Georgia area, it is definitely a Seller’s Market.  The inventory of homes for sale is at an all-time low which is preventing some potential sellers to list their property.  Here are some things to consider if you are one of those sellers:

  • Consider new construction. Often times you will have a more definitive timeframe and have somewhere to move.
  • Consider renting for a while. Yes, it may require two moves, but will also give you time to find just the right property.
  • Consider moving in with family. Not the most ideal situation, but some have the extra space and would agree for a limited time.
  • Go on an extended vacation. Have an RV or rent one? With work from anywhere situations, this might be the opportunity to travel until the market has more inventory.
  • If you have a beach/mountain rental, use it until you find your next forever home.

Bottom line is, if you can be flexible, you can take advantage of getting top dollar for your current home and still find your next home.  Give me a call and let’s work out a plan for you.

Best Regards,

Marie Dinsmore

Experience, Passion, and Commitment to Excellence

Featured Neighborhood: Greenwich Park

Greenwich Park is a luxurious, gated community located in Johns Creek. Just 30 miles outside of Atlanta and 20 miles from Lake Lanier, this area offers residents numerous amenities and recreational opportunities, including the Atlanta Athletic Club and the Country Club of the South.

Greenwich

With homes built by the respected builders, Traton Homes, these estates will have stunning architectural exterior and interior design, including four sides of exterior detail, elegant yet functional features and 3 car-side entry garages. Gourmet kitchens will be garnished with stainless steel appliances and granite countertop; hardwood flooring will spread throughout the homes and each owner’s suite will be equipped with a luxurious bath and walk in closet.

Greenwich 2

Johns Creek is a diverse community that is proud of its impeccable public safety, various national park services and exceptional public schools. In fact, the children of Greenwich Park will attend the finest public schools in Georgia, including State Bridge Crossing Elementary, Autrey Mill Middle and Johns Creek High Schools.

With easy access to I85, I285, 141 and GA400, Johns Creek offers its residents the perfect balance between rural and city life. Johns Creek national park services include the Chattahoochee River, National Recreation Area, Autry Mill Nature Preserve and Heritage Center and the Johns Creek Art Center. Music lovers will also take note of the 45-acre Encore Park, which includes the 12,000 seat Verizon Wireless Amphitheatre, the summer home of the Atlanta Symphony Orchestra and venue for top musical acts.

Each of the 21 Greenwich estate homes rest on 1/3 acre to 3/4 acre lots, and prices are in the $800,000’s. For more information about this fabulous community, please contact me.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team | www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789

 

The New RE/MAX App Is Here!

Now you can search for homes just like Realtors do, using MLS.   If you are in the market for a home, or just curious as to what homes in your area are selling for or what features they have, simply text DINSMORETEAM to 678-929-2100 to receive this powerful, free tool.

Remax App Demo

With the new app, in a few taps of the screen users can:

  • Download and enjoy it free of charge on your mobile phone or iPad.
  • Instantly search by your current location, city, zip code, or draw your own search area on the map.
  • Search by type of home desired, price, square footage, year built, # beds/baths, and much more!
  • View all photos of the home saved to MLS.
  • Quickly zoom and navigate neighborhoods with interactive “balloon view” maps.
  • Generate turn-by-turn driving directions from your current location to properties that interest you.
  • Save your favorite listings.
  • Easily share properties for sale with friends and family.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com  | 770-712-7789

Even With A Newly Built Home, You Still Need A Buyer’s Agent.

Close up of a welcome mat in front of an inviting house With the accessibility of today’s housing via the internet, many home shoppers may feel that they don’t need a buyer’s agent to help them find their dream property.   And for newly built homes, while you can do a lot of the legwork yourself, in the end you won’t be saving either money or time.

Plain and simple, even though the buyer’s agent works for you and not the seller, the seller is the one who will wind up paying for your agent upon closing.  Therefore, the first question you should be asking yourself is, “Why would I pass on a service that is in essence…FREE?”

In today’s market, most new homes are being built by national builders who employ salaried agents to sell their properties who don’t always have your best interest in their heart.  Generally, the first thing a seller’s agent will want to know about you is whether or not you have representation – if you don’t, the commission that they would normally have to split with your agent will go directly into their pocket.

With this, a selling agent is obviously interested in getting you to pay top-dollar for their property; however, a buyer’s agent will help counteract this by taking note of other similar sales in the area and making sure you aren’t paying too much.  In essence, your buyer’s agent is there to buffer you and negotiate on your behalf so that by the time you close, your house has not only been properly inspected, but has also been placed in perfect condition.

Similarly, when it comes to financing, a good agent will help you walk through the process of finding a solid mortgage company who can give you options which fit your lifestyle.  While the agent employed by the builder may also come ready with financing through a partnered company, it’s important to remember that they may not be looking to help you find the best solutions.

In short, when entering into a real estate transaction, it’s important to have someone in your corner who will make sure that you are taken care of throughout the entire process.   The Dinsmore Team can help you find the right mortgage lender, closing attorney and help you find your perfect home.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com  | 770-712-7789

Appraisal Myths

Another very good article house questionfrom Mary Thompson, Certified Appraiser, with Lanier Appraisal Service.  It’s important to know the facts regarding the appraisal process when valuing a home.  Although your  personal loan approval may be accomplished early in the loan process, the final loan commitment usually hinges on a satisfactory appraisal.

An experienced Realtor will be able to advise if you are listing your home too high for the market even before the final appraisal.  Having the right team on your side will help you get your home sold faster, and at the best market-price possible.

Marie Dinsmore, Certified Luxury Home Marketing Specialist

The Dinsmore Real Estate Team  |  www.dinsmoreteam.com

Marie@DinsmoreTeam.com | 770-712-7789

***

Article courtesy of Mary Thompson with Lanier Appraisal Service.   Please see their website for additional information:   www.lanierappraisalservice.com

Myth: Assessed value should equate to market value.
Reality: While most states support the concept that assessed value approximate estimated market value, this often is not the case. Examples include when interior remodeling has occurred and the assessor is unaware of the improvements, or when properties in the vicinity have not been reassessed for an extended period.

2014 Lake Lanier Tax Assessments are out and your homeowners may need a Certified Appraisal for their Appeal. If so, call Lanier Appraisal Service ASAP. We are getting booked up quickly for Tax Appeal Appraisals as the DEADLINE is June 30th! 

 

Myth: The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality – no matter for whom the appraisal is conducted.

 

Myth: Market value should approximate replacement cost.
Reality: Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind.

 

Myth: Appraisers use a formula, such as a specific price per square foot, to figure out the value of a home.
Reality: Appraisers make a detailed analysis of all factors pertaining to the value of a home including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.

 

Myth: In a robust economy – when the sales prices of homes in a given area are reported to be rising by a particular percentage – the value of individual properties in the area can be expected to appreciate by that same percentage.
Reality: Value appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable properties and other relevant considerations. This is true in good times as well as bad.

 

Myth: You generally can tell what a property is worth simply by looking at the outside.
Reality: Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends.

 

Myth: Because consumers pay for appraisals when applying for loans to purchase or refinance real estate, they own their appraisal.
Reality: The appraisal is, in fact, legally owned by the lender – unless the lender “releases its interest” in the document. However, consumers must be given a copy of the appraisal report, upon written request, under the Equal Credit Opportunity Act.

 

Myth: Consumers need not be concerned with what is in the appraisal document so long as it satisfies the needs of their lending institution.
Reality: Only if consumers read a copy of their appraisal can they double-check its accuracy and question the result. Also, it makes a valuable record for future reference, containing useful and often-revealing information – including the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the vicinity.

 

Myth: Appraisers are hired only to estimate real estate property values in property sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers can and do provide a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

 

Myth: An Appraisal is the same as a home inspection.
Reality: An Appraisal does not serve the same purpose as an inspection. The Appraiser forms an opinion of value in the Appraisal process and resulting report. A home inspector determines the condition of the home and its major components and reports these findings.

Community Resources

WELCOME

2019 Welcome Services

The Dinsmore Team has created this handy guide for both Buyers and Sellers. The guide lists trusted service providers that we use personally and professionally. The providers listed service the Forsyth and North Fulton County areas.

2014 Complete Guide to Moving

This 20-Page Guide will be your comprehensive source for selling your home and planning your move. It includes tips for getting ready to sell, planning your move, packing and transitioning into your new home.

2014 Home Owners Tip Guide

This 20-Page Guide will help you develop an annual maintenance schedule for your home's systems and appliances to help you avoid bigger problems by taking care of them while they are small. It's also a great resource for trouble shooting malfunctions on your own, saving you time and money.


utilities

Looking for a fast way to connect all of your utility services online? Try Connect Utilities.

Please let us know if there are other resources you'd like to see.

Marie@DinsmoreTeam.com

770-712-7789