The market in the Triangle is balanced, but heading into a seller's market. Buyers who are expecting to be able to negotiate are having a harder and harder time as the market continues to transition. Multiple offer situations are occurring more than 50% of the time for my clients.
So how do you get the home you want? The answer is to rely on the appraisal to renegotiate price, if needed. For an upcoming contract:
1. Be prepared to pay asking price, or even more if it goes into multiples.
2. Write a 21 day due diligence period into the contract (longer if possible).
3. Have all of your loan documentation in before the contract is accepted.
4. Order the appraisal the minute both sides have signed.
5. Make sure that the home appraises at or above contract price. If below, ask the seller to reduce the price to match the appraisal. Sellers will usually agree to this, since there's a good chance the same problem would come up for the next buyer.
Here's an example:
1. The list price of the home you want is $380,000.
2. The home's value from analyzing sold homes in the area is lower, at $373,000.
3. Multiple offers drives the price up to $385,000, which is the price you get the house at.
4. The appraisal comes back at $381,000.
5. You renegotiate with the seller to have the price adjusted to $381,000.
This situation happens often in the current market. If you have any questions, feel free to contact me.