Many First Time Homebuyers are frustrated by the current real estate market in Raleigh and Cary because they are being outbid in situations where there are multiple offers. The fact is, in some price ranges in the Raleigh Metro area, there’s not enough homes on the market. Multiple offers are an economic reaction to low supply and high demand. Rather than being discouraged by competition, gather key information and plan your strategy.
How Do You Know How Much To Offer For A Home?
Begin with a careful analysis of VALUE, not PRICE. Many years ago, an appraiser told me that Price is what someone pays for a house… but VALUE is what they get. All list prices are not created equal! Some agents are known for pricing below market value to encourage multiple offers. Because of the current demand in some price ranges, there are a few banks in our area that will price their foreclosed homes in Raleigh at absurdly low prices relative to market value. Why are they doing this? Because they want to receive multiple offers and get a higher price!
With low inventory, there may be few comparable properties making it especially tricky to know is true market value. So the most important question becomes: What is the property worth to you? The best idea is to look at “comparable” homes in the area, and understand the value of a home that’s already had upgrades done, versus a home that still has formica countertops.
Does it have value to you not easily reflected in the price per square foot number? Price per square foot is calculated DIFFERENTLY for areas that do not have central heating and air, for instance. Homes with Unfinished Square footage in the Attic (johnston County is famous for this) will price out differently than homes that have been finished. Yes, both might be 2406 square feet… but the finishes will make a difference in the price! The Agents at Raleigh Cary Realty will help you compare homes!
Keeping close tabs on what’s happening in the neighborhoods that you are interested in is crucial. How many similar properties have come on the market in Holly Springs, in your Price Range? These are questions we will be asking, and updating. Knowing the “overall” pricing for Raleigh is important – but Real Estate is LOCAL – which means we need to be monitoring what is going on in each neighborhood, and each street you might be interested in.
Sometimes multiple offers will still result in a sales price close to the list price. Buyers need to have an agent with their finger on the pulse of their specific target neighborhoods to derive at a true assessment of what you will need to offer to WIN THE BID!
If you are considering a home purchase in Raleigh, Cary, Apex (or anywhere in the Triangle Area) we encourage you to work with a professional home buying team! We know what Insurance agents are going to really listen to you, and help create a policy that covers you from disasters – and one that works within your budget. Your home is an Investment, and as such, you will want to Insure it properly! Call Raleigh Cary Realty, our agents will answer all of your Homebuying Questions!
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