Listing Courtesy of RE/MAX REALTY GROUP REHOBOTH
It was only a few years ago that the last thing a prospective Rehoboth Beach home buyer had to worry about was being outbid. Those were the days when the bottom seemed to be falling out of the Rehoboth Beach real estate market. Anyone brave enough to be looking to buy at a time when the real estate market was frightening most folks away was not only plucky—they were also alone. Sellers who had to move no matter what found themselves forced to accept offers that they knew were well below their property’s true utilitarian value. The only saving grace was that those same sellers could turn around and buy in their new community at the same kind of crazy discount.
That, as they say, was then—and this is now. As the real estate market in Rehoboth Beach continues to revive, sellers’ mindsets have returned to normal. Knowing that their Rehoboth Beach home is a valuable commodity, they demand offers that are respectable. One national survey found that that buyers are acting quickly on the most sought-after homes, and that overall, median DoMs (Days on Market) fell to 32 in March from 40 just a month earlier.
As the spring selling season heats up, some buyers who find the home of their dreams may also suspect that they aren’t alone. It calls for definitive action—and if it looks as if just making an offer might not win the day, some additional action. For home buyers who have a good idea that they must act decisively or miss out, here are some options for increasing the odds that their offer will be accepted:
One tactic to prevent being outbid is to add an escalation clause to the offer. If allowed, such a provision states if the seller receives another offer, then the buyers are willing to increase their own offer to a set price. For instance, a home buyer who makes an offer of $310,000 might include an escalation clause in increments of $3,000 should a competing offer appears, up to a maximum of $360,000.
Since people have different reasons for selling their home, another tactic is to discover what's important to the seller. Perhaps they have a new job opportunity and need to vacate as quickly as possible. Or maybe they have plenty of time, and are holding out for the maximum price. Your agent may have a good idea what is motivating the sellers so that you can craft your offer around their requirements. If a normal schedule calls for an inspection period of 10 days, but the sellers want to move quickly, they may be motivated by a shorter inspection period.
Usually, home buyers find it prudent to keep the upfront earnest money pledged to a minimum, allowing them more leeway in limiting their loss if they decide to back away from the deal. Increasing the earnest money shows the sellers you are serious about completing the purchase. It also subtly affirms your financial stability. An even more substantial demonstration is to become pre-qualified with a mortgage lender. Unless an all-cash purchase is possible, it’s the best way to guarantee you will be able to act quickly. Even if competitive bidders appear, when you are a pre-qualified buyer, you increase your chances of winning out.
When I’m tapped to act as your buyer’s agent, I become your advance scout and strategic partner as you explore this spring’s exciting Rehoboth Beach real estate market. I hope you’ll give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestate.com
“Is now a good time to sell?”
A Rehoboth Beach home is never put up for sale on a whim. Although outside events can conspire to control the timing of that kind of major real estate venture, in most cases, the sale or purchase of a home happens on a timetable the Rehoboth Beach buyer or seller thoughtfully works out. That can be when a move will least interfere with everything else that’s going on (school and career schedules are often the ruling considerations). Or, it can be when surrounding conditions seem particularly auspicious.
The answer to the “is now a good time to sell” question looked to be a pretty firm ‘yes’ last fall for a number of reasons. The rebound in Rehoboth Beach home values had been underway for long enough that in many instances, previous high water marks had been equaled. Many who would have expected low appraisals as few years back could now anticipate friendlier results. The volume of sales seemed mainly limited by the number of homes being offered; and if fewer competing properties were available, all the better. In the background, good economic news began to arrive more frequently…
Also, there was one well-publicized additional factor that made it look as if the “good time to sell” might not last much longer. It was widely anticipated that action by the Federal Reserve Board to finally raise the Fed funds rate would rain on the Rehoboth Beach real estate parade, since that would certainly force banks to raise home loan interest rates.
Nationwide, those reasons had the expected result. Per Reuters in last Friday’s New York Times, apparently it had been a very good time to sell. “HOME RESALES RALLIED IN DECEMBER, AND PRICES ROSE AS WELL” was the headline describing last month’s activity. Unseasonably warm weather had helped, but “buyers rushing into the market in anticipation of higher mortgage rates” may have been more of a factor.
Sure enough, the Fed did raise the benchmark Fed funds rate, causing mortgage interest rates to…er…
That’s where the analyses, expectations, predictions, forecasts and conjecture fell to pieces. The banks were supposed to have to raise home loan rates to match, yet by last Friday they had shed another quarter of a percent. As the Times reported, “…rates on 30-year mortgages have dropped below 4%, and many mortgage experts expect them to stay below 4.25% this year.”
As the Rehoboth Beach real estate market prepares for the upcoming spring selling season, that unexpected boost seems to herald a lengthy extension of the extremely favorable borrowing environment. When Rehoboth Beach homeowners ask themselves “is now a good time to sell?”—the answer seems to have gone from a “yes” to “yes, indeed!”
If your response to the buying or selling question is tipping toward a ‘yes,’ now is the time to explore how your plans mesh with today’s Rehoboth Beach market. A good start: give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.