It's Cold But The Market Is Hot
We have a cold snap going on right now weather-wise in Northern Nevada, but the real estate Market Hot. It has changed almost as quickly as it slowed oh so many years ago. We've seen the trending for some time, but it is happening now in a big way locally as well as nationally. Investors seem to be moving to real estate at all levels, the big hundreds of millions of dollars investor as well as the local onesy twosy guy looking for a good deal.
You don't need us or any other media outlets to tell you this. Look at the market. In Northern Nevada there is little residential inventory as it has been selling briskly. New Listings are coming in priced higher and they are getting multiple offers. We saw a home listed last week get three all cash offers within twelve hours. Buyers that need to get a loan have a hard time competing in that market without paying a little more for the home.
Paying a little more for the home isn't a bad thing these days. An extra $5,000 on a 30 year loan is but $22.10 a month more. If that is the difference between getting the home now and having to keep competing in the market, not knowing what is coming and at what price, it seems like a small price to pay. The way the prices are increasing, that $5,000 will be reached by the overall Market in a very short period of time anyway. Be the pioneer and get it bought.
Other random Market signs: We recently closed escrow with a "flipper" on a house that he put back on the market one week later priced over $33,000 higher than he bought it for. It sold in less than a day. We've seen several homes that were listed with ambitious prices and are selling at or near their lofty asking price.
We anticipate more action from investors involved in a 1031 exchange. Most California markets are lively and investors are much better off bringing their equities to Nevada via a tax-deferred exchange rather than paying the newly increased California and Federal income taxes. The smaller investor, or one that wants to divide his investment into smaller units, will compete with the owner-occupied residential user in this scenario. It is best to get bought as soon as you can to get ahead of this anticipated competition.
Regardless of how excited we all get about our Northern Nevada Market activity and price movement remember, if you are getting a loan the house must appraise properly. Rapidly moving markets are a challenge for appraisers which can adversely affect you. Not to say you aren't right in your thinking about price, the Market factors they use just haven't caught you yet. Appraisers know when the Market changes, and will look for comps that are current and accurate. Add some time to your escrow to allow for current escrows to close and become comps for you.
Our Advice: This Northern Nevada Market requires a shift in mindset by all parties. Sellers must think in terms of actually having their homes sell. Some are even moving from a Short Sale situation to an equity position. Though some areas are touting a 30-40% increase in sales prices, our region hasn't seen that... yet. Buyers have to compete to get a home bought today. Competition starts with finding the property and carries through making a timely and effective offer. Your Agent will help you structure your offer so you get separation from the others and look as strong as you can given your Buying position.
These are exciting times full of opportunity for everyone. Enjoy the moment. When it comes to choosing professionals to assist you with your real estate needs... Experience is Priceless!