2021 has been an unusual year, as was 2020 with the Corona Virus. This year is a little wild in the real estate industry. Homes are getting multiple offers, most are selling for more than listed price. Some homes are getting as many at 6-8 offers. That is unusual in NW Iowa here except for in the early Spring market. Even then, it is unusual to get more than 3-4 offers.
Realtors are changing how they do business to best assist their buyers and sellers, including our office. Last year we saw the lack of inventory and the low interest rate as 2 significant factors that would change our market. We started looking outside our area for solutions to how other Realtors were handling the situations. 3 Tools are making a big difference for our Buyer and Seller Clients.
Several solutions surfaced immediately:
1) This one we have been doing for nearly 2.5 years. The other realtors in our area are not doing this to this day. That
is to hold a property on the market available for at least 3 days and 5 is what we recommend to sellers. Of course, this is up to the seller. But, if the ultimate goal is to sell for top dollar then this is the way to go in the current
market. By not immediately accepting an offer, more realtors and buyers are aware the property is for sale.
2) Buyers are required to be preapproved prior to looking at properties. Sellers are encouraged to require this in their
listing criteria. If a buyer is preapproved, they will know what price range to search for properties, what kind of loan
they are getting and therefore the Realtor will know if a specific property qualifies for the loan type. They will also
know what their payment should be.
3) Escalation Clause - I LOVE THESE. Our office is the only one in our area that uses these, not sure why. Other than
they are not aware of them or how to use them to benefit their clients. These give my Buyers a tool to safely ratchet
up their offer if another offer comes in above theirs.