So, you’re ready to buy a home in the Reno Sparks area? You’ve heard that we’re in a sellers market and it’s tough for a first time home buyer haven’t you? Yes, we are most certainly in a seller’s market in certain price ranges and finding a home for first time home buyer or even seasoned veterans can be quite difficult. Here are some tips and things to avoid, so that your offer has a much higher chance of getting accepted and you get that home you’ve been waiting for!
Yes, we know this is a no brainer for most of you and that’s great. But, there are some people who look for a home before even finding out what they can financially afford and not afford. Talk to your local Reno Sparks lender and if you can’t find a reputable lender to work with, give us a call and we’ll give you some great recommendations. If you’re a cash buyer, you can disregard this simple tip.
Do Your Research! Is the home priced right?
You have a realtor, right? Great, have your realtor do a CMA(comparative market analysis) on the property you’re interested in and see if it’s priced properly. Your realtor has now provided you with an accurate comparative market analysis in the area of Reno or Sparks you’ve been looking at. You’ve now found out that the property you’re interested in is priced at market value or slightly above, now it’s time to move onto the next steps.
So, the property you were looking at is priced at about market value and you’re interested, but it’s Friday afternoon and you’re ready to enjoy your night and you figure you’ll wait to view that property until Saturday or maybe Sunday afternoon when you have a little spare time. Well, you just lost that property because you didn’t want to inconvenience yourself or your partner. Yes, you really did just lose that property because you decided to wait a day or two. In a sellers market where all the properties you’re looking at are getting multiple offers, time is truly of the essence and if you can’t understand that, you need to face the facts and realize that you’re not going to get the house you want if you don’t put the effort in.
Don’t Ask for the Simple Stuff
You’ve been searching for many days and weeks in this hot Reno market and you realize that you needed to act fast, so decide to write an offer, awesome! But, you then ask the seller for $200 in repairs and their 12 year old refrigerator. Congratulations, you have just lost the house again. When you’re up against multiple offers, sometimes these small things can make or break a deal, so if your realtor suggests against you putting these additional terms into the offer, it’s not a bad idea to listen to them. After a few rejected offers, you might start to listen to your real estate professional. Also, we are not suggesting that you should never ask for repairs, this is just an example.
Should I lowball? I’m cheap!
We all know you’ve watched an episode or two of million dollar listing or maybe you got some tips from Mark Cuban on Shark Tank, but the time to lowball a seller in this Reno Sparks market is pretty much over. Don’t get me wrong, if you’re looking for homes in the $450k+ range, that’s an entirely different story and market. If you’re in the sub $400k category, please continue reading. Nearly 29% of all closings within the last 90 days have gone over the asking price in the Reno Sparks market. So, we suggest you offer at least full price for the home and maybe consider going slightly over asking if the house is priced properly. This will give you a much better chance at getting your offer accepted and moving one step closer to finally getting the home you’ve wanted.
What if it doesn’t appraise?
That is a great question and we’re glad you asked. We’re dealing with that quite frequently in this hot sellers market here in Reno. If you’re going to buy this home with either a conventional/FHA/VA loan and the appraised value is lower than your purchase price you’ve got a huge problem. So, your lender won’t allow you to buy this home because according to their appraisers, it just isn’t worth what you were willing to pay. You now go back to the drawing board and your realtor will have to negotiate with the listing agent and sellers. You have four possible outcomes. A) The seller will agree to reduce the purchase price to the appraised value. B) The seller will ask you to come up with the difference from the appraised value to purchase purchase price in cash. C) The seller will split the difference from the appraised value to purchase price with you. D) The seller will not agree to sell below their original asking price or your current agreed sales price. We can’t tell you what a seller will do or choose, but this is why having an experienced realtor in your corner to explain each step and most possible outcomes is a huge benefit to you. Another thing to think about, if a seller doesn’t agree to reduce the purchase price because your appraisal came in low and you can’t afford the difference, you’re out roughly $900(appraisal, home inspection, pest inspection) this is based on a house roughly 1500-2000 SF in size and from our vendors in the Reno Sparks area. Prices will vary by area.
We’re really glad you’ve decided to educate yourself on how the process works currently in this tough market here in Reno. We really are trying to do our best to provide a great service for you. If your agent hasn’t shared this information with you and this is the first you’re hearing of this, maybe it’s time to give the team here at Reno Home Sale a call, we’ll do our best to assist you with all of your real estate needs. We hope you find this information helpful and if you do, please share it with your friends!
Thanks so much,
Reno Home Sale