Housing Market Bouncing Back
Across the country, the real estate market is slowly seeing the housing market stabilize and bounce back. The combination of low mortgage rates and steady market demand is coaxing homebuyers out of hiding. In fact, in some cities, the bidding war strategy has emerged once again, as people compete over the best housing deals. Statistics even show that during the past year, in 92 of 100 U.S. metropolitan areas, home prices have actually increased.
Housing analysts note that most economists agree that the U.S. is behind in the five-year projected outlook for the housing recovery; however, this year and next year are considered transition years, helping get the market back on its feet and in full swing.
Many homebuyers and investors still face stringent loan standards, as these are not going anywhere anytime soon. This is still restricting the market for many potential buyers, especially those who lacking extensive bank documentation. However, hard money loans will still be a popular alternative for investors in the next several years, helping provide bridge loans via a direct lender.
What should homeowners do when faced with a potential bidding war? Simply, nip it in the bud by not wasting time on low-ball offers. Gone are the days when people could pick up a house for under 20-percent of market value. The average home is actually selling fairly close to asking price, if it’s priced right to begin with. As many sellers have become more realistic about the real estate market, being flooded and inundated with real estate and economy news, sellers are becoming more realistic up front about their expectations for selling their homes.
Additionally, homebuyers need to do their research, or select a real estate professional that knows the local market inside and out. If homes in a certain price range are experiencing competitive bidding wars, buyers should not consider making an offer of two- to three-percent below the asking price. If homes are selling for more than the asking price, consider making the first offer the strongest, as it makes the best impression and gives homebuyers the best chance of snagging their dream homes.
When putting together an offer, an experienced real estate agent will explain the importance of limiting contingencies, especially if the sellers are looking at competing offers. Often, it isn’t the price, but a number of factors sellers consider when selecting an offer, including price, loan types, contingencies, closing dates, leaseback options, etc.
Better Than Loans focuses on investment-type loans, including apartment complexes, multi-family, self-storage facilities, office buildings, land development, warehouses, equipment and machinery, retail centers, mobile home parks, raw land, resorts, restaurants, mixed use properties, convenience stores, gas stations, car washes, hospitality hotels and motels, taverns, new residential developments, pawn shops, golf courses, marinas, auto body repair shops, industrial land, owner occupied businesses, special purpose properties, conversions, medical offices and even gold mines.