The real estate market is moving at a rapid pace and once again, multiple offers are a common occurrence on new listings. Sellers love them and buyers hate them. Last Friday a house went on the market at 3pm and by Saturday morning there were 50 showings and 20 offers. Even listings that have been on the market for a while are selling as buyers are getting so frustrated losing in multiple offers that they are opting for older inventory. Many homes are selling at list price or above.
There are 130 pending sales on the MLS in Chisago County; 14 homes sold within 1 day, 35 sold within 10 days, and the median marketing time was 35 days; which includes the amount of time for the inspections. The median list price was $228,250 which is an 8% increase over the median list price for 2016. Pending prices range from $499,900 in Chisago City to $115,000 in Rush City. 16% are new construction, 4% have 20+ acres, and 21% are waterfront homes.
With increasing prices, we see some properties that don’t appraise, and the prices get renegotiated. Sellers find this extremely frustrating as they don’t want to reduce the price, but many buyers don’t have the cash to make up the difference as the loan is based on the appraised amount or the purchase price, whichever is lower. Even buyers that can afford to pay the difference may decide they don’t want to pay more than the appraised value, which may be permissible depending on the contract.
Inventory is still very low, and buyers are waiting for new listings. The market typically stays hot through June, and then starts to slow down in July through the rest of the year. If you are thinking about selling your home this year, and you want to get the highest price possible, you need to start marketing your home as soon as possible. If you are looking to buy a home, you need to work with a full-time agent that is on top of new listings, can show properties, and negotiate quickly and effectively.
Whether you are buying or selling, an experienced real estate agent can analyze your situation and recommend the best plan for you.
Ask the Real Estate Agent is a weekly column by Cheryl Kempenich of Coldwell Banker Burnet, who lives and offices in the Chisago Lakes Area. Submit your questions to firstname.lastname@example.org. All information is deemed reliable but not guaranteed. For legal assistance consult an attorney.