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  1. 1. Don’t be surprised if that great house at a great price attracts other buyers. Home Buying Tips for a Seller’s Market or-a-sellers-market/ In most parts of the U.S., home values have started to recover lost territory. Most experts agree that the bottom of the market was in 2011. Corelogic reported nationwide home values have appreciated 12% over a year ago. In Las Vegas, they’re up 25% over last year. Today’s buyers missed the bottom of the market but there are still some good values. The biggest dif f iculty in today’s market is low inventory. Low inventory means that it has shif ted into more of a seller’s market. The number of homes currently listed f or sale without of f ers in Las Vegas is only a three month supply of homes. The National Association of Realtors views a six month supply of homes as a balanced market. More than that is a buyer’s market. Less is a seller’s market. By this standard, we are in a seller’s market. Home Buying Tips for a Seller’s Market First Step – get your mortgage pre-approved. This is a wise move whether it’s a buyer’s or seller’s market. You need to know there are no issues on your credit that could prevent you f rom getting the loan. You also need to know how much home you can af f ord. Get a “pre-approval” not just “pre-qual” letter f rom your lender. The pre-qual only tells what you might qualif y f or if everything you’ve stated is correct. Pre-approval letters happen once the lender has verif ied the inf ormation. This includes running your credit, verif ying employment, income, source of down payment, etc. Sellers will have more confidence in your offer when it’s accompanied by a pre-approval letter. Early Bird Gets the Worm – In a seller’s market, the most desirable homes don’t linger on the market. Ask your Realtor to send you all listings that meet your criteria as soon as they come on the market. If a new listing looks interesting, schedule a viewing at the earliest opportunity. In January, 44% of the homes that sold in Las Vegas were on the market f or less than 30 days. In February 43% sold in less than 30 days. Just over 30% of the homes sold in both
  2. 2. Success! months showed less than 15 days Days On Market. The homes that show great f or a great price can receive of f ers in only a f ew days. This is especially true in the lower price ranges. In popular communities like Summerlin, homes in the higher prices sell quick. A home in Eagle Hills sold f or $1.675M af ter 4 Days on the Market in February. Lowball offers backfire – If a home’s price is at market value, your of f er should be at or close to list price. If there are competing of f ers, you may need to of f er more than list price. Putting in a low ball of f er gives other buyers time to come in with their of f ers. If the of f er is too low, the sellers may not even counter your of f er. Clean Offers Win – If you’re in a bidding war, make your of f er as “clean” as possible. Let the sellers choose the Title company/Escrow of f icer. Don’t make the seller pay f or the home warranty. It’s more important to get the home you want at a good price than quibbling over minor issues. Short and Sweet – If you’re paying cash f or a home, of f er to close of escrow in two weeks or less. If f inancing, close within 30 days. You will have a due diligence f or inspections. We can get an inspector out within a week. If the home’s in a Common Interest Community, you’ll have f ive days to review the documents once you receive them. Sellers will view you as a more serious buyer if you’re prepared f or a quick close. Don’t Offer the price if you aren’t willing to pay - Home prices have gone up but appraisals don’t always ref lect it. Today’s sellers of ten ask that the buyer agree to pay any dif f erence between the of f ered price and appraisal. They may agree to cap the dif f erence at a specif ic amount. Hire the Right Realtor – Find an experienced Realtor who is an expert in the local market. A good agent won’t just help you f ind the home. They’ll provide comps to help you decide how much you should of f er. They’ll make sure your of f er protects your deposit in the event there are issues with the inspection. They’ll stay on top of things f rom showing you the home to writing the of f er and a successf ul closing. Home Buying Tips f or a Seller’s Market courtesy of Debbie Drummond, a top Las Vegas Realtor. Thinking of buying or selling in Las Vegas? Call (702)354-6900 or email