As we’ve been discussing in our recent newsletters (send me an email if you want to receive our recent blog posts), restoring balance in the market is a good thing for everyone. Despite our continued local high, the real estate market nationwide has definitely started to cool down. Ideally, we can reach and maintain a balance between a seller’s market and a buyer’s market, where we can not only profit from the sale of a property but continue to invest in real estate with a healthy profit margin. Here are the key market indicators of a buyer’s and seller’s market and tips to make the most of each…
Seller’s Market: A seller’s market is basically when demand is greater than supply. We are currently in roughly the 10th year of the seller’s market. Since there are fewer homes available than people who want them, sellers have the advantage. Homes have been selling faster than ever before. Buyers, having to compete for a property have lost the power to negotiate, resulting in bidding wars, having to pay more than asking price, and often having to accept properties as-is.
Tips for the underdog in a seller’s market:
Act fast! Know what you want and have your Realtor set you up to receive immediate notifications when a property within your parameters comes onto the market. As Realtors we receive instant notifications when a property comes onto the active market and can have you notified instantly via email or text.
Be ready to make an offer. Get prequalified if you are not planning on paying cash. You will most likely not get accepted in a highly competitive seller’s market with an extended loan approval time. Let me know if you need recommendations for local trusted lenders.
Cash is king. As we discussed last week, look into getting a cash advance on your loan so you can compete with cash buyers. Reach out if you need our blog posts with the most reputable companies offering this service in our area.
Know the seller has the upper hand. If you want to win the game, this is not the time to push contingencies, concessions, closing dates or even repairs. Decide what is a deal breaker for you and what is worth losing the property over. Knowing this early on will help you to make the most competitive offer that you are comfortable with.
Don’t get discouraged and don’t give up. Learn and move on. If you don’t get your offer accepted, talk with your Realtor about what set the winning bid apart. If there is anything you would have done differently, take note and get back at it. With patience and an experienced Realtor on your side, you will get the property you are searching for.
In order to keep this from turning into a novel we’ll go over a buyer’s market and tips for sellers next week. The market is shifting. This is an opportunity to not only sell and get the most out of your property but also to be poised to invest as prices start to cool off. We will also go over key market indicators in next week’s newsletter and on our social media platforms so stay tuned for important numbers to be watching. We will be keeping you up-to-date, not only with our weekly market update but also with local market statistics to ensure that you are in the best position whether you are getting ready to buy or sell in the coming months.
Your Realtor should not only be someone you trust in knowing the real estate market but also in wealth building, preservation and management. At the Zager Group, we don’t take this responsibility lightly. We are committed to continuously learning and sharing about making the wisest choices for our future and the future of our friends and clients. We pride ourselves in being experts in this field. If someone you care about needs guidance or recommendations, please share our contact information as we are honored to be able to help!
As you can see from the numbers below we have had a slight increase in inventory but prices are continuing to rise. Despite the rest of the country starting to balance out a bit, our local market continues to increase in value. The rest of the world has caught on to our piece of paradise!
We had 5 new condos and 5 new homes come onto the market this week. We currently have 32 active condos ranging from $415,000 to $5,425,000; the median condo price is $787,000. We currently have 48 active homes on the East Shore ranging from $899,000 to $64,500,000 with the median price of $2,995,000. Here’s a year to date local update:
Local East Shore Lake Tahoe, Nevada Stats – All Year to Date
- Total Sales YTD: Condos: 51 | Homes: 40
- The Median Sales Price: Condos: $710,000 | Homes: $1,802,500
- Number of Sales Over $1 Million: Condos: 11 = 22% | Homes: 36 = 90%
- The Highest Priced Sale: Condos: $5,665,500 (Tahoe Beach Club) | Homes: $32,000,000
- Median Price Per Square Foot: Condos: $591.59 | Homes: $650.70
- Median Days on the Market: Condos: 80 | Homes: 89
If you would like to receive our in-depth market update or would like an evaluation of your property’s value we would love to hear from you! We’ve put together some information below that we think you’ll find useful. If you have anything you want to share with our community please let us know so that it can be included in future newsletters.
Thank you!
Craig Zager & The Zager Group