One of the hottest housing markets in history is sweeping the nation today. There are people moving from the northeast to places like Florida in droves who are trying to escape the cold weather, Covid restrictions, high tax rates, and retire in style. In many cases, these people have sold their homes up north and have cash to buy properties, and there are not enough homes for sale to meet the demand. This, and a host of other contributing factors, has boosted home values through the roof this year!
Contrary to what some people think, buying or selling a house in this type of market can become challenging and cost you time, and ultimately your sale. Typically, a Realtor can be worth their weight in gold because they have the local, on the ground knowledge and understanding about the different communities, and they have access to the newest homes for sale. When you are looking to sell a property, the Realtor’s commissions are generally 5% to 6%, which can be a large sum of money, depending on the selling price. So, let’s take a deeper dive into why you should hire a Realtor to buy or sell a home in 2021’s hot housing market.
How Realtors Should Help Sellers Capitalize on A Seller’s Market?
When you are looking to sell your home in hot markets it is paramount to price the property correctly, with the understanding that homes are selling for record prices these days. This is hard for sellers because they do not always understand that over-pricing a listing can make it sit on the MLS and, when that happens, buyers feel there is something wrong with the property. After all, why else would it not be sold when everything else gets sold within days, even hours of being listed? You never want your property to seem stagnant to buyers because if you do get an offer, it will most likely be a weak offer. You want to get all the money and not leave anything on the table. This is where a Realtor’s local real estate knowledge is so important to consider. They know what the homes for sale in communities close for and can calculate those “comps” when advising you on the best list price for your home. Realtors can also assist you in the best staging practices, which is proven to get sellers the highest offers, and more quickly.
What About When You Want to Buy A Home?
Whether you are paying cash or financing your first home, it is important to hire a Realtor if you want the best experience in becoming a homeowner. This is especially true in booming markets like coastal states are experiencing in 2021. Buyers are finding that even with paying cash, it is challenging to buy a home you love because there is no doubt that several other buyers also want to purchase the same property at the same time you do. There are more buyers than there are homes to buy. Just think about that for a moment, and let it sink in a bit.
People who have saved their money and are looking to retire are buying up new construction homes in places like Florida, faster than they can build them. In this scenario, having a buyer’s agent can make or break your deal. For example, when you see a new home get listed, so does everyone else. That means the seller will have lots of phone calls and showings set up for potential buyers quickly. Moreover, in hot housing markets buyers will send in offers for homes for sale without even seeing the property.
When you are competing with multiple buyers for the same property, your offer MUST stand out and be strong to even have a chance of getting accepted. Most people do not understand what that means on their own, and it will absolutely determine if your offer gets a response or not.
When you hire a Realtor as a buyer’s agent, there typically is no fee for their services because the sellers pay commissions. Plus, an experienced buyer’s agent will help you properly navigate a hot market by alerting you to brand new listings first, allowing you the time to see the house and then get your offer in quickly. They will help you to properly structure your offer, with supporting documentation for cash on hand, mortgage approvals if applicable, and inspection and appraisal contingencies to protect you throughout the transaction.
Real Estate Agents Can Help Investors Realize an ROI
If you are a seasoned real estate investor or just thinking about buying your first investment property, a Realtor can help ensure that you buy the right properties for the best price possible. Plus, they can advise you about the current market conditions, including home values and projections, and market rental prices for any homes or communities you are considering. As an investor, you want to ensure you are buying properties for at or under market values, that can be rehabbed and flipped for a guaranteed profit or held and rented for enough money to be profitable. These are all the things local real estate experts are charged with, and they can save you from making a real estate investment mistake that can cost you more than it is worth. A Realtor can guide you towards the best investment opportunities and forecast accurate results for your housing portfolio’s goals.
Why Veterans Should Hire A Realtor in 2021
Real Estate Agents can also guide buyers and sellers through the maze of various types of loans. This is especially important for Veterans who qualify for VA loans. Understanding exactly how they work and what you are entitled to, can be confusing for those who are not experienced with it. Realtors can make Veterans have a seamless experience when buying a home in 2021.
Agents themselves are not charged with being experts on loans but most have their “go to person” who is in the business of explaining and recommending the best loan for a buyer or explaining the downside of a particular loan product to a seller.
One of the least understood loans is the VA which many Veterans want to have accepted by a seller because qualifying Vets can finance 100% of the purchase price! Sellers BE ADVISED that there have been RECENT CHANGES to VA loans that make them more attractive to sellers. For instance, until recently the buyer Vet could NOT pay for the WDO (AKA the termite inspection). That has been changed, for good reasons, and now the buyer is responsible for that expense.
What has NOT CHANGED is the requirement that a “clean” WDO or Wood Destroying Organisms report is necessary before closing a VA loan. That means the house must be either free from active or past evidence of wood destroying organisms or such infestation was successfully remedied.
Currently a Vet can pay to repair such issues but usually they must be complete prior to closing. Real Estate Agents can be extremely helpful working out the negotiations in these cases!
Also, the VA APPRAISAL will be slightly different from a conventional appraisal in that if the VA appraiser see peeling paint it will have to be repaired before closing. In addition, existing appliances must be in working condition.
All that said, the time frame on closing a VA loan should not be different from a conventional product. The bottom line is that Military Veterans buying a home now have a more equal chance at having their offer accepted in this HOT market than in the recent past.
Wrapping It Up!
Hopefully, you can see that hot housing markets can be difficult to navigate successfully on your own without fully understanding all the specific nuances that can affect your transaction. Moreover, a local agent should be knowledgeable in all aspects of the homes and neighborhoods in which you are interested in living. So, do not just hire your uncle, the Realtor who lives in a different state to represent your purchase or sale. Hire someone who is an expert in where the property is located, and who can get you top dollar if you are selling, and who will make homeownership a realtor for buyers, as well.