by katezr | Dec 10, 2020 | Eldorado Living Magazine Real Estate Columns
As property values and multiple offers continue to increase in Eldorado, the issue of the appraisal has become a common conversation.
It can now take up to two months to close a house purchase, and during that time, the data for the prices of sold homes in the market may not have caught up to the price that homes are currently selling for.
Some buyers, who would typically pay cash for their new homes, are getting loans due to the historically low interest rates.
As a result, in most multiple-offer situations, the majority of offers have a lender involved, with the resulting need for an appraisal.
A better plan is to require the buyer to waive the appraisal contingency at the time of contract acceptance.
This scenario is preferable, so all parties are aware of the potential issue and makes for far less drama towards the end of the transaction.
Best to nail this down up front, and then buyers are aware they may need more cash on hand than just their closing costs.
Appraisers are taking the current market into consideration and not using comparable sales that are more than three months old. They use active and pending listings as well, not just sold data.
“When we look at comparable sales, it is already historical data,” says appraiser Torsten Moest.
“When appraising property in a fast-moving appreciating market, if a pending sale went under contract shortly after the home was listed, it often indicates a contract price at or above listing price.”
Buyers who come ready to play in Eldorado – know that they will likely be paying over the asking price, will happily waive appraisal contingency and employ the many tips and tricks to secure a home in Eldorado.
by katezr | Dec 7, 2020 | Eldorado Real Estate Market Report
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This month’s record is the average Eldorado sales price of $544,000. That is 46K higher than the previous record of $498,000.
SELLER’S MARKET CONTINUES…
Low inventory is still an issue (there are 4 active listings as I write this) as many buyers continue to discover our wonderful neighborhood and all that it offers. Most properties are receiving multiple offers which often lead to a sales price higher than the listing price. With interest rates at historic lows, buyers who would have been cash, are opting for a loan. Our low inventory is driving up listing and sales prices.
Buyers are still writing offers on homes they have not seen, some seeing them in a couple of days, some others don’t see their new Eldorado home until after closing. High-quality photography, 3D videos and 2D floorplans are critical to buyers who are not in town now, but have the means and are eager to buy.
If you or someone you know are getting ready to list, better sooner rather than later to leverage the current rapidly moving market. Please let me know if you would like more information on current market conditions.
In November:
8 Active Listings
10 Under Contract
10 Sold
$219 was the average price per square foot last month. This has ranged between $214 and $246 over the last six months. This number depends on such a wide range of factors – the size of the house, age, quality of the finishes, views, heating, construction, etc.. and is not a fully accurate measure of value, just one tool of many. The larger the house, the lower the price per square foot. The smaller the house, the higher the price per square foot.
23 – were the average days on the market in November. These are the number of days it took for sellers to accept a contract – not the days from contract to closing.
99% – is what sellers received of their listing price last month. This is the price in which the home was listed when it sold, not necessarily the original listing price. This has ranged from 97% – 100% over the last 6 months. A few sold over the asking price.
$555,000 average listing price
$544,000 average sales price. ALL TIME RECORD!
0.8 months of inventory – Months of Months of inventory means the length of time it would take to sell all the homes listed in Eldorado at the current rate of sales. Six months indicates a balanced market between buyers and sellers. Less than 6 months means a seller’s market, more than 6 months means a buyer’s market. This is about a 3 week supply.
| Number of Homes For Sale vs. Sold vs. Pended (Jun. 2020 – Nov. 2020) |
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| Average Price per SQFT (Sold) (Jun. 2020 – Nov. 2020) |
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| Avg Days On Market & Sold/List Price % (Jun. 2020 – Nov. 2020) |
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| Average Price of For Sale and Sold (Jun. 2020 – Nov. 2020) |
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| Months of Inventory Based on Closed Sales (Jun. 2020 – Nov. 2020) |
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