According to the recent Reno market update - August 2014, sales appear to be slowing down. The total number of listings decreased by only 29 while the number under contract decreased 3.3% in just one week. In my daily travels around town, I have seen more than a few overpriced listings. When you partner that with the yo-yo-ing appraisals we are seeing, it makes for a bit of a tricky market.
I have found an unusually high amount of "value options" lately in the Reno real estate market. In fact, one property was given one value amount by an appraiser one week and then came in $10,000 less from a second appraiser just a couple of weeks later. I don't know if this is may be due to an inexperienced group of appraisers out there right now or what. It is especially confounding when you factor in that we keep seeing an increase in home prices.
The appraiser can be just as big of a hurdle (and sometimes even bigger) than finding a buyer for your Reno home. Sellers need to make sure that they are pricing their homes appropriately for the market, including what the appraiser believes it to be worth. A bank is not going to approve a loan amount that is higher than the appraised value, even if the buyer is willing to pay more. The buyer will have to come up with more of a down payment to make up the difference. Unfortunately, this has proven the downfall of many home sales in the Reno marketplace.
Reno home buyers may want to extend their search range to a higher price point to see what is out there. Then, make sure you run your numbers with your real estate representative. That higher priced home may not be worth as much as they are asking. You could come in with a strong offer that is closer to the true market value and is more fitting to your budget. When you are ready to find your next Reno home, contact the Hamilton-Veach team. We are always ready to compare properties and give you the best advice on buying a Reno home.
Charlene Hamilton and Lesley Veach, Your Reno Real Estate Specialists
Originally posted on my Reno real estate blog here: http://renohappenings.com/reno-market-up-date-august-2014/.
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