If you have been searching for a new home along the Jersey Shore lately, you have more than likely discovered that there is a lot of competition in the buyer’s market. The majority of the offers that we have been submitting on behalf of our buyers, have gone to a “highest and best” round, as sellers are finding themselves looking over multiple offers.
The lack of inventory of homes for sale has created a very aggressive atmosphere for buyers and a very opportunistic environment for sellers. While sellers are enjoying being able to select the contract with the best terms that suit their needs, they should be cautious as fierce competition causes the offer prices to rise. While selling the property for more money may seem appealing, if a high priced offer is subject to a financing contingency, then caution should be used in making sure the price is not too high for the property. Buyers that are obtaining a mortgage in order to purchase will be subject to an appraisal. An appraiser comes out to ensure that the subject property is worth the sales price. If the sales price is found to be too high, the buyer may not be approved for the mortgage.
With the guidance of a REALTOR, current market pricing can be evaluated and obtained. If representing the buyer, a market analysis will help the buyer to understand the true market value of the property and possibly prevent a mortgage denial for having negotiated too high of a price. Cash buyers can also be protected in that usually cash offers are not subject to an appraisal and therefore a cash buyer could essentially pay what they want for a property. Advice from their real estate agent can prevent overpaying for a property.
Sellers may feel that in such market conditions, they can sell the property on their own. It is with the exposure that REALTORs bring to their listed properties that ultimately attract so many buyers. Real estate agents can also help the sellers find the “sweet spot” of pricing when facing multiple offers. This can be an elevated price that should not cause appraisal issues.
Whether preparing to buy or sell, take advantage of our Spring Market Consultations that we are booking now. As a buyer, we can help you to determine how much buying power you have and aggressively begin the search so all the latest properties are presented as they hit the market. For sellers, we have our NY Times featured marketing plans that will surely attract the buying population. Need to sell before you buy? We have plans to help make the transition to your new home as smooth as possible. Contact us today to schedule your complimentary consultation.