The current housing market in the Storm Lake Iowa area is a great place if you are a seller, it is not a great place if you are a buyer.
Low inventory and high demand in real estate means Seller's market. That is exactly where we are today in the Storm Lake IA area market. Many homes this year, listed and received accepted offers within 3 or 4 days and many ended up selling for over the listed price. Sellers are having a field day, combined low inventory with the rumblings of an increase in interest rate and Buyers are jumping into deals.
But, if you are a Buyer it is a tough market, you have to be working with a Realtor who can get you in as soon as a property lists. In other words not a part time agent who works only a few hours. You have to have your bank mortgage preapproval in hand. You have to listen to what your Realtor is telling you. If your Realtor says, "Give it your best shot, this may be your only chance on this one." Then do it, if you come in lower than where your realtor's comparative market analysis shows you are probably not going to get the home.
Another term that is getting offers passed by is closing costs. Closing costs are Buyer's Fees, mostly fees the bank is charging you for your loan. Asking the Seller to pay your closing costs even though you offered at list price is going to net the sellers below list price.
Example $100,000 list price, you offer $100,000 but also ask for closing costs of 3% of purchase price - or $3,000. You are actually offering the Seller $97,000.
Top 3 take aways for Buyers:
1) Get a GREAT Realtor - one who is full time and knows the market
2) Get your banking done, you must have a mortgage preapproval for your offer to be taken seriously
3) Commit to work only with one Realtor - this is an Exclusive Buyer Agency, let them know you expect
Top 3 Take aways for Sellers:
1) Get a GREAT Realtor - one who is full-time and knows the market. DO NOT ALLOW the REALTOR or the Brokerage to show the property prior to opening it up to ALL the local REALTORS. The more buyers who have access to your property the better and the higher the number of offers you will receive.
2) Have your property show ready, get a pre-listing inspection and make the repairs. It could save you a lot of money in the long run and keep you from losing that great offer because of a bad inspection report.
3) Be reasonable on terms and pricing. Remember, If your property is priced too high it won't appraise, if it doesn't appraise the bank will not loan for the mortgage and you are back at square one.