Edina, Minn. – March. 27, 2013 – The low inventory of homes for sale this spring has created fierce competition between buyers who can end up in multiple-offer situations for well-priced homes in desirable neighborhoods. Edina Realty offers advice for both homebuyers and sellers in these multiple offer situations.
For homebuyers, the first and best piece of advice is to work with a REALTOR®. While many homebuyers are self-sufficient in identifying homes and neighborhoods, they can benefit from a REALTOR®’s expert advice throughout the home buying process, such as how to negotiate price, how much earnest money to put down and what down payment assistance programs and financing options are available.
In a multiple offer situation, the buyer’s REALTOR® can give advice on whether it makes sense to put in an offer that’s above the asking price. Factors such as the home’s condition, location, time on the market and how it compares to similar homes in the neighborhood are key in making this decision.
Another good piece of advice: avoid putting contingencies in your offer. A “clean offer” with no contingencies, such as making the home sale contingent on the sale of your current home, will always be more attractive to the sellers. However, you will want to have the home inspected to make sure the home doesn’t require immediate and expensive repairs such as cracked foundation or a leaky roof.
Sellers who have been waiting for the market to come back can finally make their move. This even includes some homeowners who were “underwater” or who didn’t have much equity in their homes. According to the Minneapolis Area Association of REALTORS®, housing prices are steadily increasing; the median sales price of a traditional (not a foreclosure or short sale) home is now $205,500, up 14.2 percent from last February.
It’s officially a seller’s market, because there are too few homes for sale in a market where buyer demand is high. This is good news for sellers, because they could easily receive multiple offers, depending on the home’s condition, neighborhood and how it’s priced.
There are a few things sellers need to do to get ready. First, choose an experienced agent who can help market and price the home so it will receive the best offers (and possible multiples) in this market.
Next, have the home pre-inspected. This reduces the chance of any unpleasant surprises that could ward off potential homebuyers and possibly ruin the deal. Offering an Edina Realty Home Warranty would give buyers confidence that they won’t have to pay for any unexpected repairs during the first year.
Finally, de-clutter and stage your home so that it’s in tip-top condition. This could include painting the walls with neutral colors and moving or rearranging furniture to make spaces feel more open.
It’s important to remember that if the home receives multiple offers, the best offer may not always be the one with the highest price. Home sellers need to consider several other factors, such as who’s paying the closing costs, and whether the homebuyers are requesting repairs to be made or other expensive concessions. Most importantly, sellers will want to be confident the sale will go through. Their home’s potential buyer should be pre-approved for a loan and put down enough earnest money to demonstrate they’re serious.
Edina Realty is holding another Open House Extravaganza on Sunday, April 7, when hundreds of homes are held open for potential homebuyers as well as sellers who are considering selling their homes.
For more information on the housing market, multiple offer situations, the April 7 Open House Extravaganza or to contact an experienced Edina Realty REALTOR® for a free home value estimate, call Edina Realty at 952-928-5563 or visit www.edinarealty.com.
Edina Realty, a subsidiary of HomeServices of America, is one of the nation’s largest real estate companies with approximately 55 real estate offices and 2,100 REALTORS® throughout Minnesota and western Wisconsin. Edina Realty's family of companies includes Edina Realty, Edina Realty Title, and Edina Realty Mortgage. Edina Realty handled more than 32,660 transactions and $6.9 billion in sales volume in 2012. For more information, visit www.edinarealty.com, m.edinarealty.com, or find us on Facebook: facebook.com/EdinaRealty; and Twitter: twitter.com/Edina_Realty.