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The real estate craze or crazy is here!
Dated: February 23 2022
Have you seen it? Have you felt it? Are you going crazy like the real estate market!?!?
Well, 2021 was one for the books, but 2022 is going to say "HOLD MY BEER". This crazy real estate market has never stopped and I'm getting asked several questions from clients and agents alike. "Is this a bubble?" "When is it going to cool off?" and "Do you see the market shift coming?" The easy answer to all three of these questions is, not yet.
Bubble? - No, this isn't like 08'-11' when the cause of the "bubble" WAS the housing market - more accurately the truth and lending practices across the country. And just FYI, Iowas truth and lending laws have always been a little more strict and while we weren't unaffected we were much less affected than those in other markets. And in Iowa City and Cedar Rapids, we basically had a 4-6 percent dip in the market values and prices...which we will see often in a "bad winter", and quickly recovered from.
A cool-down or shift? - Not yet. We've seen interest rates tick up over the past few months. Which really just pushed more people into the market that were "sitting on the fence". We've had record low inventory for a couple of years now and multiple offers and creative approaches to those offers have never been more abundant. Is it crazy? No not really, just "different from the norm". The way Mom and Dad did it years ago is gone, and the way you did it last time a few years ago has changed dramatically! This might mean crazy to you but it's now the (and I hate this saying, but) "the New Norm(al)".
I remember about a decade ago working a deal for a buyer and suggesting an escalating offer (offering more than someone else by a certain amount usually up to a cap amount, for example, offer $315,000 on a property listed at $300,000 then $1,000 over the next highest offer up to $330,000 with bonafide and verified proof of the other offer) for my clients on a very unique home that they wanted very badly, this was in 2012 when the market was starting to rebound. Long and short, they listened and they won the bidding and were so happy that I gave them the option. Now we are seeing them all the time! I say that to let you know that there are many ways we go about setting our client's offers (for buyers) above and beyond those of the other buyers. It's not always price (but we all know it starts there) and sometimes knowing a few other items to cut out or waive can make an offer more appealing to a seller. Do we always win? No, do they see the value in listening to our suggestions? Yes, sometimes it just takes longer for some than others. And we help them win far more than lose out on.
On the listing side, let's be honest, sellers have most of the power because they have something that people want and demand is very high. On average there are 5 buyers for every 1 listing. This varies by price range but basically, if it's under $500K (in our markets) this rule applies and has since spring of 2020. The biggest thing we are seeing on the listing side is the misunderstanding that just having the property isn't enough, it still has to be priced correctly in order to get the bidding war started and the home must show its best face from the start. The things we do behind the scenes to get it to that place are a huge first step. Then we have to make it as easy as possible to make viewing the property and access it as quickly as it hits the market. This might seem like an inconvenience for some, but if done correctly it will be a minor and usually for a short time. And we're getting 100%+ on almost every single listing we take for our sellers.
But why work with an agent and pay them X% (we'll tell you what we charge) if it's so easy? The answer, because it's not so easy! We just make it look that way. There are many things we do for the prep for buyers and sellers. From understanding the market and trends to know where to put your money as a seller for a quicker sale or a better offer (if warranted) for buyers. From the networking with other agents and professionals in and around the business to make it easier on all parties, from paperwork and legal contracts to prequalifying buyers so no-ones time is wasted, the buyers and sellers most of all. Then there are the negotiating and "what ifs" of the business that we know and understand because we do this every day all day. As a REALTOR® we have legal and fiduciary duties to our clients, customers, other agents, and the general public and I for one take that VERY SERIOUSLY.
Let's talk if you want to know more about what we do, because lets be honest, I can't get it all in here, and even if I could, you most likely are going to read it! ? Maybe watch for a video on this in the near future. Thanks for checking us out and make it a great day!
Travis Hiatt, CRS, SRS, ABR, e-PRO, C2EX
REALTOR®, Licensed Real Estate Broker in Iowa
1810 Jonathan Street
North Liberty, IA 52317
Hello, I'm Travis Hiatt I'm the broker and owner of NextHome Beyond in North Liberty, IA. I work primarily in the Iowa City and Cedar Rapids metro areas of Iowa. I love Real Estate and sales and h....
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