Is it a Buyers or Sellers Market?So, who really is calling the shots in the Boise real estate market?

With the recent upturn in the Boise real estate market, there may be a changing of the tide when it comes to who is calling the shots in our local residential real estate transactions. Had you asked me this question six months ago, I likely would have said that buyers had the competitive edge.  However, with current low inventory levels and upticks in demand, sellers are gaining ground in the way of negotiating power. It is important to note that this trend does not apply to every property.  But,  if you are looking to buy or sell a home in today's Boise real estate market, this shift in negotiating power definitely has implications for you.

 Implications for Buyers in the Boise Real Estate Market

  • You may need to act fast. Reasonably priced, well maintained homes or properties that are amazing deals are often receiving multiple offers within the first few days of being on the market.  If a new listing pops up that looks like a good value, it is likely you are not the only one considering it.  If it looks like what you've been looking for, contact your agent as soon as possible to schedule a showing.

  • You may have to compete.  In today's Boise real estate market, multiple offers are not uncommon.  Know that you may have to compete for some of those great houses.  And, even if your offer is excellent and over asking price, you may not be the top pick.  To give your offer the best chance of success with the seller, I suggest the following:

    • Make sure you are preapproved for a loan through a reputable lender and that your agent submits your preapproval letter with your offer.

    • Find out if the seller would prefer a longer closing or a shorter one.  If you can accommodate their timeline, do it! When in doubt, shorter is usually better.  A 15-20 day close can give you the edge over a similar offer with a traditional 30-45 day close.  NOTE:  If you are getting a loan you will want to make sure that your lender can meet your closing timeline.

    • If possible, avoid asking for concessions and extras, such as closing costs, upgrades, cleaning services, warranties, or repairs.  If it is necessary to include some of these things, focus on those that are most important and leave the others out.  Clutter free offers are simpler and more attractive than those with a long list of requests.

    • Have your agent provide you with information on comparable sales in the neighborhood.  This will allow you to make an educated decision on how high a price to offer while still remaining  in line with reasonable market values.

  • You may have disappointment. Despite your best efforts, you may not be the one to get the home you are competing for.  Try not to be discouraged.  In multiple offer situations, we tell our clients to offer the price and terms they feel comfortable with and that won't create buyer's remorse should they be the winning bid.  If you put your best foot forward, even if you don't come out on top, you won't have any regrets.  You can walk away with confidence that  you did the best you could and that the right house for you and your family must just be waiting around the corner.

  • Look for houses with less competition. On occasion, scour through the listings that have been on the market for months, even those slightly above your price range. Typically these homes are overpriced and, even if  you bring a significantly lower offer, discouraged sellers may bite or at least be willing to negotiate.

Implications for Sellers in the Boise Real Estate Market

  • Be realistic. Yes the market is improving, and yes many sellers do have a competitive edge.  Even so, guard against getting too greedy or you may blow your chances of capitalizing on the current Boise real estate market.  Buyers may be anxious to find the right house amid low inventory levels, but the economic downturn that characterized the last several years has made them wary of seduction by overpriced properties.

  • Make your starting price the right price.   Your home's first two weeks on the Boise real estate market are the best for capturing buyers and attracting multiple offers.  Making sure your home is priced well from the get-go will help eliminate frustrations with future price drops and excessive days on the market. Moreover, it will encourage competition for your home and likely get you a better offer sooner.

  • Have your home looking its best.   Although inventory is low, buyers aren't rushing out to buy anything and everything that comes available.  However, they are rushing out to compete for the BEST homes that come available.  Attract buyers in the Boise real estate market by making your home shine online and dazzle during showings.

Regardless of whether you are a buyer or a seller, make sure your agent provides you with the necessary data to make informed decisions during the negotiating process.  A knowledgeable agent can give you a competitive edge, regardless of your position in the transaction.  If you'd like to learn more about today's Boise real estate market or what you can expect as a buyer or seller, give me a call or send me an email.   Whether buying or selling, I look forward to using my expertise to help you successfully navigate this evolving phenomenon that is the Boise real estate market.