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Real Estate

Understanding Your Real Estate Market

Vaibhav Rai

December 16, 2018 10:48 PM

As the saying goes, “knowledge is power”. When it comes to real estate, this is true whether you’re a novice embarking on your first homebuying experience or a seasoned homeowner looking to sell your current home for newer digs. Given the complex nature of real estate, it’s fairly common for those on both ends of the spectrum to find the learning curve for this industry a bit daunting. A common question for both buyers and sellers alike is often “Where do I start?”

Worry not, friends! As always, we’ve got your back. We’re here to help you feel confident during the process of buying (and, now, selling) a home. So, where to begin? Regardless if you’re buying or selling, we think it’s always wise to kick things off by researching the market you’re in. For both buyers and sellers, doing so will allow you to make more informed decisions, set realistic expectations, and understand the competition. Local agents in our 6 markets have done a little digging (so you don’t have to) to get you started. Here’s what they found.

Market: Southern California

Description: Southern-California

 

 

 

The average refund for OL buyers in California is $9,539.*

Hottest areas: Newport Beach, Hermosa Beach, Inglewood, San Diego

Average days on market: 39

Median sales price: $1,389,000

Properties sold: 11,456

Pending sale properties: 11,030

Active for sale properties: 24,460

Quick facts about Southern California markets:

  • Late summer is competitive in southern California due to fewer homes on market and multiple offers situations.
  • Sellers are more flexible on price once the home has been on the market for longer.
  • For properties in Los Angeles: 2+ weeks on market is a considered a long time.
  • For properties in other areas: 1+ month on market is a considered a long time.
  • Agent advice: Tour the property before making an offer and review the comps!
  • Many sellers’ agents will list properties for lower than market value to generate more interest and garner multiple offers for their sellers.
  • Disclosures are usually provided within 7 days after seller accepts the buyer's offer. In other markets (like the Bay Area), sellers will make disclosures available without an accepted offer.

Market: Northern California

Description: BayArea

The average refund for OL buyers in California is $9,539.*

Hottest areas: Palo Alto, Los Altos, Los Gatos, Mountain View

Average days on market: 18

Median sales price: $1,622,500

Properties sold: 228

Pending sale properties: 198

Active for sale properties: 205

Quick facts about Northern California markets:

  • The Bay Area market is highly competitive. Most properties sell above the list price with multiple offers submitted on each property.
  • Buyers should always review disclosures before making an offer.
  • Important disclosures include: Property inspection reports, roof reports, termite reports, seller disclosures, sewer laterals.
  • Buyers should always review comps. The market value for most properties is often higher than the list price.
  • Offer due dates are usually very strict as most properties receive multiple offers.

Market: Seattle

Description: Seattle

The average refund for OL buyers in Washington is $11,137.*

Hottest areas: Central District, Fremont, Bellevue, Ballard

Median sales price: $495,000

Properties sold: 9,379

Average days on market: 39

Pending sale properties: 10,965

Active for sale properties: 16,773

Quick facts about Seattle’s market:

  • Much like the Bay Area, the market is very competitive. It’s not uncommon for properties receive multiple offers above the list price.
  • Sellers are unlikely to accept offers under asking if the homes has been on the market for less than 2 weeks.
  • Removing the inspection contingency from your offer could help you get your offer accepted. Buyers can still (and are encouraged to) request pre-inspections.
  • Escalation clauses are common in this market.
  • The disclosure documents are usually made available when the home is listed.
  • For condos, a resale certificate is usually provided at the time of listing as well.

Market: Austin

Description: Austin

The average refund for OL buyers in Texas is $5,573.*

Hottest areas: Bouldin, Allandale, Meuller, Crestview

Average days on market: 44

Median sales price: $326,250

Properties sold: 3,299

Pending sale properties: 3,201

Active for sale properties: 7,378

Quick facts about Austin’s market:

  • For homes in the $200-300K range, multiple offer situations are common.
  • Prices increase the closer the property is to Central Austin.
  • Buyers rarely remove contingencies from their offers.
  • Buyers rarely make offers above asking price.

Market: Chicago

Description: Chicago

The average refund for OL buyers in Illinois is $4,701.*

Hottest areas: Bridgeport, West Loop, Calumet Heights, Lincoln Square

Average days on market: 33

Median sales price: $312,750

Properties sold: 3,087

Active for sale properties: 28,983

Quick facts about Chicago’s market:

  • Properties in the $100K to $450K range tend to have the most multiple offer situations.
  • The market is slowing down with spring and summer being the busiest times for transactions.
  • Buyers typically don’t remove contingencies from their offers.

Market: Dallas

Description: Dallas

The average refund for OL buyers in Texas is $5,573.*

Hottest areas: Preston Hollow, Lakewood, Forest Hill, North Arlington

Average days on market: 33

Median sales price: $273,000

Properties sold: 10,754

Properties pending sale: 10,988

Active for sale properties: 24,714

Quick facts about Dallas’s market:

  • Buyers rarely remove contingencies from their offers.
  • New construction sales are on the rise.
  • School districts are a major factor for buyers.
  • For properties in the $250k -$350k range, multiple offer situations are common.
  • Properties that are already remodeled are in demand.

All data sourced from regional MLS and are current as of June/July 2018.

*Refunds/savings listed are estimates. Refunds/savings vary by sale price, market, and are subject to a minimum commission. The average refund across all of our service areas is $9,604.

 

This article originally appeared on OpenListings.

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