At our broker meeting this morning in Community Center of Morgan Hill, CA 95037 our local real estate professionals announced a record number of new listings coming on the market soon or just listed. I say record because we haven't heard these number of new listings in many months.
There is pinned up demand and I expect that home values will continue to rise but not as fast as in 2015. We are still looking at a multiple offer market. Meaning that many homes are receiving multiple offers and selling over list price. Sometimes way over list price.
What should a buyer do when purchasing a home in this market?
- When you are working with an agent and are competing on the purchase of a home with other buyers it is important to know what the home is worth to you.
- Have your agent run a comparitive market analysis on the home you are interested in.
- A market analysis doesn't take into account the competitive market. If you are purchasing in a competitive market offer more than the market value. When home values continue to go up you will build equity in the property if you are planning to live there for a number of years.
- If you have enough cash for a downpayment and closing cost and repairs waive appraisal contingency. This could be risky and if I am not confident in the appraised value I don't recommend it to my clients.
- waive the inspection contingencies. Homes in our market are always sold "as is" and if the sellers did all the inspections and disclosures read them carefully for any red flags. If you are confident that there aren't any major repairs waiving these contingencies may give you an advantage.
- If you are an all cash buyer that doesn't mean you get to the top of the list; your offer has to be competitive.
Morgan Hill has now 56 active single family homes for sale compared to the beginning of January when there were only 33 homes for sale.
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