Date Archives: July 2013

As some pockets in the Pioneer Valley are seeing bidding wars, a recent article from the Wall Street Journal offers sound advice.  The consensus from our Jones Team is that homes that are priced well in good condition are receiving multiple bids, particularly in the Northampton area, and in the entry level market thus boosting prices.  Low inventory is one reason for this increase in multiple bids, as well as pent up demand from buyers who have been sitting on the fence, either due to job insecurity or waiting for that perfect home at the desired price and interest rate.  

 9 Tips on How to Win a Bidding War

• Know your area. Learn the values and the recent sales in the area in which you want to live. Your Jones agent will help you with this information. Then you will know what would be an appropriate offer.
• When it comes to price, be realistic. Low offers in this market will not be productive and may waste valuable time.
• Pick your "walk away" number, and stick with it. It may be best to offer your top price first in a hot market.
• Be flexible on offer terms. Have your agent learn what the sellers are looking for in terms of closing date, and other considerations. If you are able, accomodate them.
• Don't dawdle-if you love the house, act fast. Chances are someone else loves it too.
• Get preapproved by a bank, otherwise your offer will not be seriously considered.
• Decide what you want to do if the appraisal is below asking price. Some buyers are willing to pay the difference in cash to get the house of their dreams.
• Position yourself as a backup in case another buyer pulls out.
• Connect with sellers. Write a personal letter to the sellers telling them why you would like to buy their house. Your agent can present it with the offer.

  While going through a multiple bidding process can be challenging, our Jones Team in Amherst, Belchertown and Northampton has the experience to help you through this process. Contact a Jones agent/advisor today!

Market News from Masslive.com raises many questions. Linda Rotti, Sales Manager from our Amherst office discusses the data.

"It is very difficult to look at one month and to make inferences as to the condition of the housing market.  If you look at the last quarter, April through June, the number of sales in Hampshire County dropped -.5%:   303 sales were reported in the 2^nd quarter of 2012 and 292 for the same quarter in 2013.

If you look at the entire 2^nd quarter in terms of median price the average rose 6.7% .  Statistics show that in April it actually fell 4.3%.  The basic economic rule of supply and demand is at work in housing market.  We do have a smaller supply and increasing demand.  This will and has caused housing prices to rise.  One important caveat to this statistic we need to factor in is that higher priced homes are beginning to sell again.  This will also affect the median price statistics.  With a better economy we have more buyers in the higher price ranges raising the median price home sales.  Both phenomena factor into the 6.7% increase in median prices.

I hope this gives a broader snapshot of the market.  It certainly is a bigger picture."