Judy Boyle, Realtor®, RE/MAX
Last time I did, I ended up with six inches of snow blanketing my fully bloomed daffodils. What I will say is “Welcome Spring Market”. And what an interesting spring market it is.
Just as quickly as the beautiful cherry blossoms and dogwoods shed their blooms, so the newly listed residential properties are scooped up by savvy buyers. Jumping back to Economics 101, I refer to the concept of Supply and Demand. Demand refers to how much (quantity) of a product or service is desired by buyers. Supply represents how much the market can offer. Relevant to the real estate market, when demand outnumbers supply, we are in a seller’s market. My friends, we are in a seller’s market.
In the chart below, I have illustrated the current state of the real estate market in the area. What is interesting to note is that the units that are “On Market” have been sitting there for approximately four months, on average. This is four times the average days to offer of those pending below. As we all know, these properties are either overpriced or have some material defect that prevents them from selling.
|# On Market*||# Pending Sales||Average Days to Offer||Average List Price|
*Single family units as per the Multiple Listing Service on 4.20.2016
But with regard to new listings, not all is lost for buyers. With three critical things on their side, buyers do have a shot at securing the home of their dreams. First, it is critical in this market for buyers to have, in hand, a full preapproval letter from a local and reputable lender. My friends, a prequalification letter is not going to get you a house, despite what your lender may tell you. And if a seller’s agent is not familiar with the lender, chances are your offer will be passed over for another.
Next, a deposit of at least 3.5 percent of the sales price with no “home sale” contingency will please a seller. Simply, the higher the deposit, the more attractive the offer.
Lastly, buyers must have a superior buyer agent representing their interests. The definition of superior is “higher in rank, status or quality”. As it pertains to real estate, the operative word is “quality”. An agent with fancy titles and numerous acronyms after his or her name is not necessarily a superior agent. A superior agent will be able to provide testimonials and real-life examples of what sets him or her above the rest to bring transactions to the closing table.
Any average buyer agent may indeed know about listings a soon as they come to market as most of us subscribe to the Multiple Listing Service. Unfortunately, in this seller’s market, that may be too late. A superior agent will know about listings before they come to market and how to counsel its buyers. Furthermore, a superior agent will utilize tricks of the trade to potentially make its buyer stand out from the competition.
In short, this will be a highly competitive spring market for all buyers. To quote the Boy Scout motto, buyers must “Be prepared!”
Boyle lives in Northborough where she is also a Chapter Leader of the Neighbor Brigade, a local non-profit that assists families in times of crisis. She has been a real estate agent since 2003 and consistently wins awards and accolades for excellence in customer service and sales volume. Her mission is to empower her clients to make smarter decisions through data-driven insights and local market knowledge. She invites you to follow her on Facebook at www.facebook.com/judyboylecares, call or email her for the Spring 2016 Home Buyer and/or Seller Guides, or just to talk Real Estate.