Housing Market Rebound
The U.S. is slowly seeing the real estate market rebound, as housing prices become more stable and begin to bounce back. A combination of record-low mortgage rates and a steady housing market demand is gradually coaxing homebuyers from hiding. Some cities have even seen a return of housing market bidding wars, as people compete for the best deals. In fact, statistics show that over the past year, in 92 out of 100 major U.S. metropolitan areas, home prices have increased.
Market analysts note that the U.S. is behind in their long-term five-year outlook for housing recovery and the next several years will be considered as transition years, which are anticipated to help the real estate market recover.
Many investors and homebuyers face difficult loan standards, which are not expected to ease up anytime soon. These further restrict the market and likely correlate to the housing market requiring a transition step. As many banks’ underwriters require extensive bank documentation, hard money loans are a popular alternative for buyers and investors, helping offer necessary bridge loans via a direct lender.
There are certain tactics that buyers can employ when faced with a potential bidding war. Presenting a highest and best offer first will increase a buyer’s chance of appealing to the seller. The days where a buyer can lowball an offer by 20-percent of market value are gone and homes are selling for close to asking price. In fact, since sellers are becoming more attuned to market expectations, they are pricing homes accordingly with more realistic expectations.
Homebuyers need to do their own research or employ a real estate professional that is familiar with the local market. If homes in some areas are subject to competitive bidding wars, buyers should reconsider the standard two- to three-percent below asking price offer. If homes are selling for more than the advertised listing price, buyers should consider making their initial offer their strongest, giving sellers a good first impression.
When compiling an offer, a real estate professional can offer guidance on how to limit contingencies, especially if sellers are considering competing offers. Often, the price isn’t the sole deciding factor, but a number of contributing factors include loan types, contingencies, leaseback options, closing dates, etc.
My Hard Money Lenders specializes in investment-type loans, including gold mines, medical offices, conversions, special purpose properties, owner occupied businesses, industrial land, auto body repair shops, marinas, golf courses, pawn shops, new residential developments, taverns, hospitality hotels and motels, car washes, gas stations, convenience stores, mixed use properties, restaurants, resorts, raw land, mobile home parks, retail centers, equipment and machinery, warehouses, land development, office buildings, self-storage facilities, multi-family and apartment complexes.