Webster's definition of value is the following:
1: The monetary worth of something: market price. 2: a fair return or equivalent in goods, services, or money for something exchanged.
Ok - now in layman's terms:
The price someone is willing to pay.
Here's the thing folks. We need to shift our thinking on the "value" of properties. We're shocked when we see a 2500 sq. ft. home listed for $600k, putting that home at $240/sq. ft.
But did you know that 2500 sq. ft. in Staten Island, NY is $1,250,000, putting that home at $500/sq. ft.?!? Oh, and that's on a 4800 sq ft lot...
It's clear that people are willing to pay way more for a home that what it "used to be worth." We are watching it unfold before our eyes. We are seeing the new definition of value being formed.
Want to check your value? You can HERE.
Inventory is low - that means there are very few homes on the market. Sellers are getting what they're asking - more than what they're asking in most cases. I've seen some of the most interest purchase contracts lately. Appraisal waivers have become super common. Now, I'm seeing "Appraisal Shortfall Waivers." Means if the appraisal comes in low, the buyer agrees to pay the difference up to a certain dollar amount. I've seen one where they agree to pay up to $10,000 of the appraisal shortfall. Wow!
This is just the market that we're in, and it's something we need to get used to.
The question is - Are you working with an LO who knows how to negotiate this market?
SO MANY "salesmen" entered the field in the last couple of years of super, low-hanging fruit. Literally, a monkey could be trained to do what a lot of us did over the past 2 years and make the monkey's owner 6 figures, plus.
Take it from someone who started writing mortgages in 2006, watched the Housing Crash/Crisis of 2006-2009, has written mortgages for 2 major banking institutions (so I know quite a bit of how they work to make their shareholder's happy, not for their customers), holds two licenses - one with the Nationwide Mortgage Licensing System AND Arizona Department of Financial Institutions: Guys - you want to work with an LO who knows how to navigate this market, who is on your side, and is licensed properly to do all the above.
Can't say that you have someone like this? Well, "Hello! It's nice to meat you! :) "
Pick up the phone and call me. 623-340-8344. I promise, within the first 5 minutes, you'll experience what all of the rest of my clients experience - comfort and peace knowing you have an LO who knows what he's talking about and is putting you before his paycheck!
Talk soon! :)
Have a great day! :)