Real Estate April 30, 2013

Challenges in the market

It’s easy to find more challenges these days in just about everything one sets out to do. Layered complexities have made even some of the simplest tasks more difficult. To try and overcome these difficulties and challenges we’ve seen many changes made in the way things are approached and regulated. This is ever so apparent in the real estate market where the way properties are bought and sold has changed dramatically over the past decade.

Some of the biggest challenges buyers are facing include historically low inventory levels, extremely strict loan qualifying standards, and heavy completion against multiple offers on well-priced properties. An overabundance of information can also confuse the issues at hand for many buyers in today’s market. “Paralysis of analysis” is not a good thing when in real estate “timing is everything”.

Even with prices on the rise sellers are seeing their share of difficult challenges. A lack of comparable sales supporting the high prices now seen has led to more escrows falling out. This can happen due to buyer’s cold feet, but more often as a result of lender’s cold feet. With strict appraisal regulations that have been scrutinized for favoring inexpensive out-of-area appraisers, local sellers have seen more errors made in property valuations than ever. Read more on appraisals.

With an elevated level of complexity in buying and selling it makes sense that the most active and seasoned real estate professionals are in very high demand. This can be seen in many facets of the market, including a recent statistic that the percentage of for sale by owners trying to sell on their own has dropped in half over the past 20 years, from 19% to 9%; and that 93% of buyers and sellers now seek professional assistance very early on.

I appreciate the opportunity to share my eighteen years of local expertise with you in overcoming the current challenges of the market. Thank you for your inquiries.