One word for our 2019 spring market... HOT.
For all the positive ideas that brings for home sellers keep in mind where there is fire, there can be some burning. There is still such a thing as properly pricing a home. And a home that is on the market longer than 2-3 weeks is likely overpriced. In the Columbus metro area, there are more pockets than usual that are revitalizing. This is great for our communities and neighbors, but if you are an inexperienced investor looking to flip a home, be sure you have the solid advice of an active and experienced Realtor who can advise on the price you can expect and buyers expectations of a move in ready home. If you are a buyer without and agent going to open houses and falling in love, be sure you have the knowledge of what REALISTIC prices are for the neighborhood. No matter how many buyers that are out there prequalified, leveraged and shopping, homes still must appraise by the bank at an acceptable price to get to a successful "SOLD". If you want that "madness" of a line out the door first day of showings, you NEED to have the price right to get those offers you are looking for. And to avoid disappointment, you should closely study the recent sold prices for homes in the same neighborhood or hire a great agent who knows the neighborhood well.
In Columbus, and outlying suburbs such as Marysville and Plain City, there is a shortage of homes under the $300K price range. Why? Home owners are staying put because if they want to move, they cannot find another home to move to. Some are choosing to build if they can find a home being built in their "comfort zone price range" and then selling their homes after the build is complete or they can find an affordable rental. The days of "home sale contingencies" are nearly over because those with homes to sell have a hard time competing with those that do not. And we have a generational issue as well...downsizers competing with first time buyers. The leverage for the downsizing home buyers is they generally have better and more resources to work with giving them the ability to appeal to a home seller by adding contract verbage waiving appraisal clauses, repair requests and sometimes even inspections. Buyers should keep in mind those clauses are there to protect them and keep their own financial health in mind when taking risks to win the bid.
Buying a home is not an easy task. Agents should be coaching their buyer clients about how competitive this market is and what they may need to do in order to "win" the home they are in love with. Also be aware we are starting to see "contingent on the seller finding a suitable home to purchase". This means some properties may not work for a buyer who desires to move in 30-45 days. In addition, buyers need to know that if their agent is hesitant to show them a home, or don't want to deal with a "by owner" sale, it may be because buyers agent co-op fees are being reduced with some listings. In some cases, buyers are paying for their Realtors services at the closing table. Agents on both sides of a real estate transaction are all working harder for less and have to think out of the box to serve their clients. It's where we are in the market and will eventually change. But in the meantime, dedicated full time agents need to adjust their sails to best serve their clients. CLIENTS SHOULD ALWAYS COME FIRST.
So even though the general population perceives a HOT market as an EASY market for Realtors, the general population should know that it definitely is not. In a hot market, consumers whether selling or buying need good, experienced agents more than ever to keep them on track whether selling or buying. Hot new Zillow listings don't sell homes, good agents do. With a standard 13 page purchase contract and multiple offer situations, it's no easy task just to keep things organized and correct. There are many hoops to jump through to get from winning the bid to closing the transaction. Good agents help their clients get through the hoops without surprises.
Vicki Workman is an active full time Realtor and leader of the Vicki Workman Team with KW Consultants Realty. Serving central Ohio and surrounding counties since 2003 helping both home sellers and home buyers. For "clientcentric" down to earth, professional, knowledgable service, contact Vicki at (614) 440-5174 or email her at firstname.lastname@example.org. Highly recommended in the Central Ohio and Marysville area, even offering free use of her team transfer truck, with a long track record of successful sales. You are never "a number" but a cherished client for life with a reliable real estate resource available to help you and yours with a VERY important and personal decision.