Home buyers make offers above asking prices in tight market | Local News

BELOIT – “Just put your socks away and make the bed.”

That’s all it has to do to sell a home in Beloit, said Teresa Skridla, real estate agent on the Helms Rose team at Century 21. Gone are the days of adding a little color or that to the top seller market Had to stage the house.

According to Skridla and her teammates Rosemary Dutter and Cindy Helms, most homes sell for more than list price in Beloit, between $ 2,000 and $ 40,000 to $ 50,000 above list price.

Housing supply remains very tight in Wisconsin, with only 2.8 months of available supply, according to the Wisconsin Real Estate Summary of May 2021 by the Wisconsin Realtors Association.

The average number of days on the market fell by 24% in May to just 73 days across the country. Home ownership declined 7.1% as average home prices rose 14.2% over the past 12 months to $ 245,500 in May 2021.

Demand conditions remain strong as the 30-year fixed rate mortgage fell to 2.96% in May. Both existing home sales and median prices rose double-digit margins in May from levels 12 months earlier when the economy was at a standstill. Total statewide listings fell 26.2% in May to just 21,195 homes for sale, the report said.

Although the housing shortage coupled with the prohibitive construction costs associated with the pandemic is creating a strong sellers market, the scenario is not without its challenges. Real estate agents must aggressively try to find their clients’ homes and make offers. It is not uncommon for home sellers to receive five to 25 offers on their Beloit homes.

Housing demand, the agents said, appears to be slow only for homes priced above $ 300,000.

A typical first-time home buyer in Beloit must pay $ 125,000 to $ 150,000 for an entry-level purchase. It’s also currently difficult to find a decent home in Beloit for under $ 150,000. It was only three years ago, they said, the average three-bedroom home with an area of ​​1,000 square feet cost maybe $ 80,000.

As of March, Dutter has said the median list price of a home in the city of Beloit is $ 152,000 and the median sales price is $ 157,000. In the city of Beloit, the median list price of a home as of March is $ 235,000 and the median sales price is $ 238,000.

“It’s not the whole story. When we offer a property in the community for $ 210,000, it’s not uncommon for $ 40,000 to be above the asking price, ”Dutter said.

Helms said that sometimes buyers are so determined to find a home that inspections are not required.

“We never recommend skipping an inspection, but some buyers feel comfortable without it and go to a local bank. It is golden to be a seller, but difficult to be a buyer, ”said Helm.

Dutter said this can even be a difficult situation at times for sellers who need help understanding the many different offers that come with selling a home.

“That can be confusing. I have to make maybe 12 offers and explain all the differences, ”said Dutter.

Condominiums are particularly in demand. Dutter said there were only three in the Beloit market and township on Thursday. The team took a keen interest in condominiums and custom homes on Blackhawk Run in the township.

Skridla said agents work harder and often need to get creative, including eventualities with flexible occupancies, as sellers may have to live in the house until they secure a new home.

Anyone looking to buy must get their pre-approval before looking around in this tight market.

“By the time you get pre-approved this house will be gone,” said Helms.

Helms said it was important for sellers and buyers to contact a real estate agent to help them navigate a complicated market.

John Peterson, a real estate agent at Remax Valley Realtors in Roscoe, said the inventory has grown slightly in the past two months, but buyers must still be aggressive. It took one of his clients a year to find a home.

“The inventory is low because not much is being built and it is quite expensive. The lack of new construction is damaging inventory and there really are no foreclosures right now, ”Peterson said.

Peterson said there was great interest in the South Beloit, Roscoe and Rockton areas.

“The number of buyers from the Chicago market is increasing by almost 50 percent. They were driven out of the suburbs because of the prices, ours being low for them, ”he said.

In addition, Peterson said interest rates were low, which made people want to buy and people reluctant to sell because of the pandemic.

“A lot of people work from home, have home offices set up and are comfortable,” he added.

Peterson said he believes the seller’s market is easily moving out of the frenzy, but it’s still difficult for buyers. On Tuesday evening, he wanted to help a client write an offer for a house that already had seven offers.