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When to adjust your budget
Agents are strategically putting the asking price on their listings lower than fair market value.
By doing this the listing gets a lot of attention and gets multiple offers.
The property then sells for above-asking price, usually at fair market value.
Now that you know this info, be prepared to put in an offer on a home above your budget.
You could also look at properties below your budget and anticipate that the price will go up to your original budget.
Be the home buyer that is outbidding the others
Are you constantly being outbid when submitting an offer on a home?
Having a lower asking price is a widely used strategy by real estate agents to get multiple offers on their listing.
If you are seeing this a lot in your search area, adjust your budget!
Let's say your budget is $800k and you notice you have been outbid now a couple of times by buyers offering $25K above the asking price.
Adjust your budget down to $775K.
That way you can now be the one to submit an offer above the asking price.
You will now be the one who is outbidding all the other buyers by $25k.
Of course, have your agent do a market analysis on the property to make sure whatever amount you are offering is fair market value for the property.
Once we find a buyer for our home, is it safe for us to move out?
After reviewing the buyer's purchase agreement, you will most likely find that the buyer's purchase contingencies will all be removed by day 21 of the escrow period.
After all, contingencies are removed, it is fairly safe to start moving out.
I say fairly safe because a buyer could still back out of the deal after their contingencies are removed.
Most buyers don't do that because if the contingencies are removed, you as the seller can go after the buyer's deposit.
The buyer's deposit is usually 3% of the purchase price.
So if the home is $1,000,000 the deposit is $30,000.
Most buyers would continue with the purchase rather than lose $30K... but you never know.
In my opinion, it's reasonably safe to start moving out once all contingencies are removed.
When are home sales the slowest?
Although right now is typically a slow period in real estate, I am predicting a hot real estate market for the 4th quarter of 2019.
The reason is that buyers have been experiencing heavy competition for the last several months, have had their offers rejected, but are still very motivated to buy a home.
All those buyers that have not had any luck lately will be hungry and ready to pounce on any new listings that come up.
That should make for an interesting end to the year.
Home sales are the slowest in the 4th quarter
The 4th quarter of the year (October, November, December) is usually when home sales are the slowest.
The reason is that everyone is busy with the holidays that come up during those months.
A buyer may put their home search on hold because they are having their family stay at their home for #Thanksgiving.
Or maybe it's more important to a home buyer to go to all the holiday parties instead of focusing on finding a home.
No matter what the reason is, the 4th quarter is typically the slowest time of the year in real estate.
Having said that, the real motivated buyers and sellers are still out there trying to make a deal happen.
Some of the best deals I have seen have gone down during the holiday season.
