The past two years have turned the process of a real estate transaction on its head. Days on the market were reduced to single digits. Buyers were more often than not competing with multiple offers. Those buyers that had already lost several times and felt desperate were throwing contingencies out of the window and offering their firstborn just for a place to live.
While we are still in a seller's market, it has slowed a bit to give buyers a little more breathing room. The question that keeps coming up is "Do I need to waive the inspection or appraisal contingency in order to buy this house?"
Well...that can vary. The good news for wanna-be buyers is that we are seeing fewer multiple offers and fewer contingencies waived. The frantic pace at which we are seeing multiple offers has slowed, allowing many buyers to undergo the normal inspection process. This has also allowed many buyers to include an appraisal contingency to protect from overpaying for a home. The good news is that it was rare to see a house not appraise for the purchase price.
In certain areas and price ranges, we continue to see multiple offers and contracts for selling up to 10% above the list price. These situations see many contingencies waived just for a shot at being the winning bid. Our market continues to see the average sale price just above the listing price, but there is a mild cooling in our market. And, I think most people welcome a slight move toward normalcy.
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