Home Prices Expected to Rise in 2016
Fairfax, VA, April 11, 2016 (Newswire.com) - Data from the CoreLogic House Price Index indicates that home prices will continue to rise in 2016. Data showed that prices rose in December 2015 by 6.3% from the year before. With home prices rising between 5-6% annually for over a year, the trend is expected to continue with predictions set at 5.4% for 2016.
Metropolitan areas often show appreciation in double digits with new single-family homes bringing in higher valuations. “Local markets with strong employment growth are likely to experience a continued rise in home sales and price growth,” stated Anand Nallathambi, president and CEO of CoreLogic.
Learning how to make a strong offer and how to counter the offer are critical skills for buyers and sellers
Michael Putnam, Real Estate Agent
While this information is good news for sellers who want to put their homes on the market, it is reason for caution with buyers. They will need to think strategically when putting in an offer and decide how much they can afford. In a seller’s market, buyers are often competing against others. Sellers can select from multiple offers with less reason to counter-offer on one that doesn’t quite meet their needs.
“Learning how to make a strong offer and how to counter the offer are critical skills for buyers and sellers,” according to Northern Virginia realtor Mike Putnam. In his article, What Buyers and Sellers Should Know About the Offer, he talks about the offer from the perspectives of the buyer and seller.
The buyer should be aware of the terms and make sure to include contingencies to protect them if things fall through on the property. The buyer initiates communication on purchasing the house by creating the offer, and must decide on the closing date and other terms in addition to the price they want to pay.
The seller must also pay attention to the details beyond the price to ensure the offer meets their needs. They have three options when it comes to replying to the offer. They can accept it or reject it, or they can create a counter-offer that changes some of the terms. It can be difficult to know when to counter-offer and when to reject it. In general, countering an offer is only beneficial when the two parties are somewhat close in terms.
While pricing is often the center of most counter-offers, it’s not the only means of negotiation. Sellers can offer to include more amenities or to upgrade certain features to command the higher price they want. In most cases, both parties must be willing to concede on a few terms for a counter-offer to work.
With home prices rising, pricing will continue to be a key area of negotiation between buyers and sellers in the offer. It’s important for both parties to understand how the offer works and to utilize it to their advantage.
Sources:
http://www.propertywire.com/news/north-america/us-real-estate-prices-2016021111550.html