It is Spring! Real Estate markets are beginning to pick up but there is a quiet desperation this year, an elephant in the room. That elephant is the lack of inventory, it has been present for the last 3 years and has grown every year. The result of this lack homes to sell is that the Storm Lake Iowa area is in a perpetual Strong Sellers Market and getting stronger every year.
High demand and very low supply are the reason for this Seller's Market. The result is multiple offers on many properties, properties selling for more than list price, and appraisers and realtors struggling to find comparable property to enable them to accurately value and list new properties coming on the market.
Multiple offers aren't a bad thing, they are good for sellers. Normally this kind of thing is unusual in our area but last year I had 6 transactions with multiple offers. One had 6 offers within 2 days, that home sold for more than appraised value. That can be a problem, because if the buyer needs a mortgage to purchase they will have to bring money to the closing table or will not be able to get the mortgage.
Buyers are offering without negotiating for the usual contingencies like inspection, closing costs paid by sellers and home warranty, buyers also must have loan pre-approval to even have an offer considered by a seller. Sellers are not allowing time to get financing in place after accepting an offer.
The perfect scenario is to have between 4 and 6 months of inventory available in any particular market. Right now the Storm Lake market has 13 properties without accepted offers. Only 1 under $100,000, 7 under $200,000, 3 under $300,000 and 2 over $300,000.
If you have a property you are thinking of selling, NOW IS THE TIME! You will own the Storm Lake IA area market if your property is in good condition and fairly priced. Call me I can make sure you get the maximum amount for your property in this Seller's market. Georgia Weaver 712-291-0118.
