Monday, October 28, 2013

Why is the buyer doing a final walk through?

Miller Real Estate was recently asked by a seller "Why is the buyer doing a final walk through?" The question surprised us, because it seems so obvious. After all -- We are in the real estate business. But hey, if this seller asked, that means that there are others out there that are asking this same question!

Some items left behind. The seller's excuse? "Nobody cleaned out the house when we bought it." Two wrongs do not make a right.Unfortunately, not all sellers are thoughtful toward their buyers. There have been times when sellers would leave junk in the home for the new buyer to get rid of. There have been times that the home was damaged during the moving process and the seller did not make the necessary repairs.

One of the most common things a seller will agree to in the sales contract, is to leave certain non realty items, and then they take one of the items with them. 

A final walk through insures that the property was left in acceptable condition to the buyers, and that the terms of the contract have been fulfilled. For example, if the contract states that the refrigerator stays, the buyers will look to make sure the refrigerator is still there.

So if your buyers schedule an appointment right before closing, don't take it personally, they are just doing exactly what they should do. As long as you, the seller,  have done what you are supposed to do, you should have nothing to worry about!

Happy Buyers and Happy Sellers. That is the goal of the Final Walk Through!

Monday, October 21, 2013

3 Month Barry County Market Update

This data is for all of Barry County and only includes Residential Single Family Homes as reported in the SWMRIC System.

From April 1st - June 30th 2010 there were 183 Homes sold at an Average Sale Price of $104,439.

From April 1st - June 30th 2011 there were 161 Homes sold at an Average Sale Price of $119,283.

From April 1st - June 30th 2012 there were 157 Homes sold at an Average Sale Price of $130,080.

From April 1st - June 30th 2013 there were 215 Homes sold at an Average Sale Price of $147,517.

*You can see that this period in 2013 has been fantastic for home sales in Barry County. This period of time is usually the very busy buying season with more buyers out looking in the market.

*We have averaged a 12% increase in Average Price since this time in 2010. The market is in rebound mode and we are still feeling this continue into the end of 2013. Their of still lots of buyers, but very few quality listings to choose from. With the lack of discount "foreclosure" listings on the market, many buyers are having to move up in price to purchase their future home. The lack of discount listings obviously increases the average sold price due to this move up activity.

*Recently our National Association of Realtors released statistics on pent up demand from Young Adults. This demand shows that in the next 2-5 years more and more new buyers will be flooding to the market. The basis of their report shows that the share of adults under the age of 35 living at home or renting is the highest since 1981. Obviously they go on to say this is due to the lack of job opportunities in the past 5-10 years and uncertainty about future property investment return. Home values are on the increase and these Young Adults are now realizing this. Rates are on the slow but steady increase and they realize that it is one of the best times to still buy a home.

*Another bonus to the increase in activity is buyers coming to the market that have recently went through Foreclosure / Short Sale. Rental vacancy is the lowest it has been in 10 years. Read the report by clicking here. The main reason for this low rental vacancy is many homeowners that had their home foreclosed on could not buy and have rented what was available. Depending on the type of loan they had and how they have structured their Credit Worthiness, a home owner that has gone through Foreclosure or Short Sale can usually buy another home within 2-5 years. The significant amount of Foreclosure activity in 2009 and 2010 is now bringing some of those past owners back into the market.

*Their has been a slight decrease in activity and confidence due to the Government Shutdown. While most of the home buying experience has not been affected, some of the programs and required documentation has been:

1. Their is an IRS form you sign at time of Mortgage Application. This form is then forwarded to the IRS for verification of income. The IRS is no longer approving these and lenders are turning to different methods to verify income.
2. FHA backed loans have slowed a bit, but are still processing applications.
3. Rural Development (USDA) is at a standstill. RD employees are on furloughs and are not currently working on any outstanding or new deals.
- Their are always ways to deal with these types of issues, so make sure you contact an Agent with Miller Real Estate today!

*Miller Real Estate and our Agents see 2013 ending as a fantastic year. We hope you make the decision to buy or sell and in doing so, call one of us today. We pride ourselves on our years of service and Full Time Real Estate attitude. Miller Real Estate has the knowledge and skills to make your experience one that you will never forget.
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