In recent months home buyers have been finding that the buying process is not as easy as they thought it would be. Per realtor.com’s chief economist, Jonathan Smoke, the national median list price is up 8.7% from last year and is on the rise, up 1.1% from just last month. Is this a reason to stay put? Not necessarily, for many people who purchased prior to the recession, this is one of the first years they can actually sell their home without taking a major loss. They can sell and find a new place (sometimes with alittle patience) but, finally, they are able to sell. 

One reason for a rise in home prices is when buyers options are slim. Buyers are more likely to offer more than the listing price in order to get the winning offer on a home which then contributes to higher list prices for homes in the same area. Kind of a domino affect. Which leads to the next challenge buyers are facing…

Buyers are finding themselves in multiple offer situations. Often times, over and over again. This can be very frustrating to buyers, especially if they sold their home quickly and now need a new place to move into ASAP! What’s there to do? In some cities there are not many options except to get in there quick and offer more but if you have an open mind, rather than jumping on new listings the first day they come on the market, I often suggest to clients that we look at homes that have been listed for a longer period of time. This can eliminate being put in a multiple offer situation and can potentially get you a better deal on a home. Homes can go stale on mls after sitting on the market for a long time, there may be nothing wrong with it except that it was listed too high to start and now it is deterring buyers for the simple fact that they think “there must be something wrong with it!” because it has been listed for so long. Being creative and having tactics that work can be a great tool that your realtor should be to the table when looking for a home. Many realtors use their office and colleagues as a tool to keep up on new listings, they can alert you on new homes coming on the market and help with finding the best home!

All in all, Buying a home is an important investment and the best thing to do is be patient and persistent. Buyers need to be realistic while also being smart, you don’t want to settle for a home that doesn’t fit the bill just because you are sick of the search!

For real estate help in the Twin Cities contact Katie Kurtz!