Are you looking to buy real estate in Cedar Rapids or surrounding areas in the next few months?  Are you a first time home buyer?  Are you relocating to this area, looking to buy your first home?  If so, I've got great news for you.  It's never been a better time to buy Cedar Rapids real estate.  

We all know that the market tends to dip a little going into the winter months.  Living in Iowa, we know that new home building ceases to exist with the fall of our first snow.  A lion's share of the real estate transactions take place between March and September.  If you are selling your house now, you have been told numerous times by your Realtor, that your house better be in A+ condition, because buyers control the market between October - February.

Here is why buyers are in the driver's seat!

  • There is a huge inventory to choose from in all price ranges.
  • Seller's know that traffic to their homes decrease dramatically in the winter.  Therefore, they are much more motivated to accept lower, but reasonable offers from buyers.  (Keep in mind, I did say 'reasonable.')
  • A buyer in this market always gets the most house for the least amount of money.
  • Interest rates are still fantastic and financing is still available for buyer's with decent credit.
  • Buyer's don't have to buy the first house they see.  Seller's know this and start to panic.  Remember, fear of loss is a greater motivator than opportunity to gain.  If a seller can't sell his/her house in "their" time frame, they will start to panic.
  • Buyer's can (with the help of their Realtor) negotiate more items into the terms of a contract such as appliances, Home warranties, and inspection related fix-up items.
  • Sellers are willing to part with less equity for their net proceeds if a buyer comes along with a decent offer.

What if I'm a seller and want to put my house on the market, and then buy?

  • Make sure your house has been updated throughout the years and is not "fossilized."  An upgraded house will be able to compete much more on the market with a home that is not.
  • Items that are a must to replace if worn are roof, furnace, A/C, carpet and/or flooring, and water heaters.
  • Make sure your house is priced right.  The only way to do this is with a Realtor.  A FSBO (For Sale By Owner) cannot do this because they do not have access to sold and active information for their market.  Don't be surprised if your house is not worth what you think it is.  It's a tough market and homes in this area, generally appreciate between 1% and 4% annually.  Price your home to sell; not sit on the market for six months.
  • Curb appeal is the first thing that buyer's see, and therefore is highly important.  Make sure your landscaping is fresh, trimmed, and colorful.  New paint on the front door, garage, railings of the porch, new mulch, trimmed bushes, flowers, edged grass, etc.
  • Don't bomb your house with those plug-ins.  You might think Christmas Cinnamon is the scent to beat all, but a "potential buyer" of your home might start sneezing upon entrance to your scent wonderland.
  • Try to resist taking out a home equity loan if you can.  Reason being; with all the costs associated with selling your house, you might not receive any equity from the sale, and in some cases, might have to pay money to close on your house.  If you don't touch your equity, it's there for you when you sell, and you can pay bills, buy down interest rates on your next house, buy down your loan on your next house, etc.

Christopher Smith

Skogman Realty

www.christophersmithrealtor.com

christopher@skogman.com

319-329-5988

Licensed Realtor in the state of Iowa