The Wenatchee market continues to surge higher now that the selling season is in full swing. Strong and incessant demand is causing home prices to set new records. It feels as if the prices are rising by the day.
Here's a stat that will raise your eyebrows: In the Wenatchee market, as of today, there are 169 pending sales vs. 113 homes for sale. That's almost 150% homes currently sold than are for sale. Virtually every home that goes on the market, as long as it is reasonably priced and in good condition, sells within a matter of days. Happy days are here for home sellers, no doubt about it.
Home buyers in the NCW market are feeling the pinch. Most are jostling for position, and if they're making offers on homes as they go on the market, chances are they're taking a few lumps before landing the right house. I've represented buyers and sellers in many multiple offer situations lately. The "Escalation Addendum" is now common practice and indicative of the environment. What is that you say? This addition to the contract allows the buyer to offer a certain price - say full price - and then "escalate" the offer to beat out competing offers, up to a certain limit. Obviously the market will appreciate rapidly when buyers must try to out-bid one another on every listing that comes on the market.
Buyers are employing a variety of other negotiation tactics as well. Something new to the market is the waiver of the home inspection. Some buyers, in an attempt to woo the seller into taking their offer, waive the home inspection entirely. For a home that's only a few years old, this may be worth the risk, but probably not for older homes, at least in my opinion.
Here's a word of warning to any buyer deciding to offer more than the listing price: If your offer is subject to getting a loan, don't forget about the appraisal! If the appraisal comes in lower than the sale price, it can cause problems with the loan. If that happens, you can make up the difference in cash, get another appraisal, or negotiate a compromise with the seller.
These negotiation tactics can be complicated, but with a good Realtor, it can be simple. My advice is to weigh the costs and benefits of each specific tactic and decide which one is in your best interests.
For a private consultation, text or call me at 509-670-0795.
All the best,