Low housing inventory is hitting most markets across the country, and this makes it more difficult and expensive for buyers to purchase a home.
In El Paso, TX the market is hot, and buyers are having to compete with other buyers to get their offer accepted. At the beginning of 2020, the buyers were able to negotiate prices or for sellers to pay the buyer’s closing costs and sometimes both! But after fall season the market shift to a sellers’ market and now home buyers are having to offer over asking price and are not able to negotiate closing costs anymore.
New listings that hit the market will receive multiple offers and most of them are over asking price. Sellers can set the conditions and in most cases the buyers are willing to give up on contingencies that protect them.
FHA and VA appraisals have always been an issue because
This market is making it especially difficult for home buyers using FHA or VA financing, because homeowners are preferring to accept a Cash or Conventional financing offers instead. Why? Well, if it is a cash offer it’s pretty much a done deal, and if it is a Conventional financing offer, then the appraisal won’t be as strict as an FHA or VA appraisal and the risk is lower for the seller.
El Paso’s market is not as crazy as other markets YET, but it is highly likely we will get there this year.
In Denver, real estate pros are reporting that some listings are seeing more than 100 showings in one weekend and are then receiving more than 20 offers. Buyers are being told to expect going 20% above the list price if –View Full Article National Association Of Realtors® 03/04/2021