Top 5 Things to know about the 2021 Spring Market

top 5 things to know in the 2021 real estate market

 

The New Orleans real estate market is WILD, y’all.

Many times this spring, we have met with new buyers, and they are shocked at how fast-paced this real market is and what is expected of them. Here are the top 5 things to know about the Spring 2021 New Orleans real estate market!

 

#1: Prices aren’t dropping. 

Many people think that if they wait a few more months, prices will begin to drop. It’s just not true. There is very little inventory (the whole supply and demand things…), and interest rates are still VERY low.

Just because your dad thinks a house is overpriced doesn’t mean it is. Real estate is not cheap these days, and you may not get what you hoped for in your budget.

 

 

#2: Be prepared for a bidding war

It feels like every house that hits the market is gone in an instant. And that’s pretty much true! New listings are flying off the market in a matter of hours, maybe 2 days at most.

In these situations, the seller receives multiple offers, and there is a “bidding war. In a bidding war, you will almost always have to go over the house’s list price.

No, we do not know what the other offers are, nor do we know what they accepted.

 

 

#3: If you don’t need closing costs, don’t ask for them

When entering a bidding war, many buyers tell us things like, “we will go above list price if the seller pays our closing costs.” Wellllll…. it just doesn’t always work that way.

For example: If the house is listed at 200k (and there is a bidding war), if you offer 210k but ask for 10k in closing costs – we are right back at 200k for the sellers. This doesn’t make your offer very enticing.

If you absolutely need to ask for closing cost assistance, we can still do so. But, if you don’t absolutely need them, then we should make a stronger offer on the house you love.

 

 

#4: Be open to an ugly house

Buyers that are open to houses that need a little more love have a better chance in this unprecedented real estate market.

Most of the people competing in your price range are looking for something cute and already renovated. If you open yourself up to an ugly house that you can make all your own – you stand a much better chance of missing out on bidding wars.

 

#5: Get ready for the seller’s timeline

Buyers don’t have much power right now, and you’re at the mercy of the sellers and what THEY need and want.

Sellers may ask for longer closing dates. They have also asked for post-occupancy and want to stay for a few weeks after closing. In other situations, they may want to close much faster than you were prepared for.

As far as bidding wars go, the sellers call the shots and decide when all offers are due. Don’t get and at your agent for the quick turnaround times!

 

 

 

Are you ready to buy your next home? Let’s talk about it. 

 

How to Win a Bidding War

 

Contact Team Be New Orleans