Home market surge continues amid pandemic concerns
By Lisa Shaw
The pandemic has caused more than health concerns for most people. Home buyers and sellers are feeling the affects of the pandemic on the real estate market in great amounts too. Home prices are higher now more than any other time in history.
While sellers have always been able to name their prices in high markets, this time around they are not only naming their prices they’re naming their terms too and their demands are steep! For many sellers the highest price still wins the bid but the terms of the offer have become increasingly important and competitive. Cash offers without financing or appraisal contingencies and offers without a home inspection contingency are becoming the norm. Sellers are putting their homes on the market expecting multiple offers within only a few days and without any contingencies. Yes, sellers not only expect buyers to pay approximately 10% over list price but they expect buyers to take on all the risk as well.
Buyers on the other hand are anxious to buy for a multitude of reasons and this isn’t curbing their appetite. Whether it be the need for additional rooms for remote schooling, home office space, growing families, divorce or the excitement over the extremely low interest rates buyers are flocking to homes everywhere in Massachusetts to get their offers in! This creates the perfect storm for buyers in a cash positive position but leaves other less aggressive buyers in the dust. Many buyers are having to write several offers on multiple properties before they can get one accepted if they’re using bank financing. It can be a discouraging market for this type of buyer but stay the course and be patient. The rates are expected to stay low for a long time and as the pandemic lessens more properties should become available.
I look forward to the opportunity to work with you. Please don’t hesitate to contact me today for a Free Market Analysis of your home.
Re/Max Executive Realty
Lisa Y. Shaw, Broker Associate