Excellent picture by: Jane
*if you want to know more about the Reno real estate market go to Reno Homes BLOG
Now, you're looking for a house. You've done a bit of research. You've been pre-approved by your lender.
You've talked about the budget. You've chosen an agent to represent you. If you haven't,--Joe Salcedo is here =)
So What's next?
Selling and listing prices are usually different From 2002-2006, many homes sold for more than the asking price. Buyers were competing against each other. Now, about 80% of homes sold in Reno are below the asking price--buyers competing against the sellers.
It is not unusual to get $20,000-$30,000 + less than what you're asking for--hence, the term "lowball offers." But notice I said " 80% of homes sold", the other 20% are the ones that are in the first time home buyer range--$150,000-$200,000.
This is a a VERY ACTIVE market. There have been times this year where I offered more than asking price--and still lost!
If you find a house that you really like in this price range, it may not be a good idea to make an offer below the asking price. Buyers are actually competing for these homes even in this down market (see: graph below).
(click here to enlarge) Median price, in effect is holding up::
(Click here to enlarge)
In Making Offers To The Sellers
Search for all sales that closed (one year's worth), pending and currently for sale (any agent can do this for you), try to get as close of a match as possible (location, bedrooms, baths etc).
Note: due to the falling real estate prices, your offer for the seller will most likely be lower than the comparables from a year ago (not necessarily applicable for under $200,000 prices).
How Much Should I offer? Sellers by nature "test" the waters. They tend to initially ask for more than what they are willing to take for their prized homes. Here's where research can reeeeeeealy help. Take for example:
Demand for $400,000-$500,000 Homes in Reno
(click Here to enlarge)
In this kind of market, as you can see in the graph, the buyers are not that many. So take your time and feel free to make low ball offers if necessary.
In Summary As you can see doing a little bit of research can help you a lot. Research will guide you in what kind of offers to make, whether lowball or possibly highball (in the case of the $200,000 and below range). The most important thing to remember is to know what you really want for a house and at what price range, and stick to it.
If you are looking for $300,000 and above it may be wise to be patient by not being attached to the homes that you are making an offer to. There are many great homes out there waiting for you. If you are interested in knowing more about an area in Reno-Sparks (demand,median price etc) You can reach me at 775-338-7653