An escalation clause is something in real estate that can come in handy at times. Especially when we are dealing with multiple offers and offers that are above asking price. These are used when you offer on a home for example at $100,000 but you’re willing to go up to $115,000. We put in the contract that we are offering $100,000 but are willing to pay $1000 over the highest offer up to $115,000. The listing agent will have to provide us with the highest offer to show us that, in fact, our escalation clause will come into play.
But what do I do if the agent/seller won’t accept an escalation clause? Well, at that point we have to bring our highest and best offer for what we can do. We have multiple tricks we can do to make our offers more appealing. We can help and make it happen!
Often times we see newspaper and internet articles that center around the housing market and its strength. Some of this data is easy to interpret as a consumer and some of it is not. Since I spend pretty much all off time looking at these types of numbers and analyzing the data avilable, I can see the market and the economic recovery as more of a marathon and not a sprint. As consumers and homeowners, it is very easy to see one report and put all of our faith in it, but there are many factors to assess when gauging the overall strength of the real estate market.
One major indicator used to assess the overall health and well-being of the real estate market is the Pending Home Sales Index. The NAR (National Association of Realtors) explains the Pending Home Sales Index as follows: “The index measures housing contract activity. It is based on signed real estate contracts for existing single-family homes, condos and co-ops. A signed contract is not counted as a sale until the transaction closes. Modeling for the PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years.”
That’s all fine and well, but what does it mean? Well the NAR distributed a press release on December 29, 2011 that stated the PHSI had risen for the second consecutive month. So let’s put that into perspective. This is the highest level that it has been at in 19 months (when people were trying to close before the new home buyer stimulus ran out)! That means that the market is making a rebound without any government stimulus or outside intervention, just good old supply & demand and low interest rates. Buyers & investors are getting off the sidelines and entering market as the perfect storm of affordability and low interest rates has hit.
The news often paints a picture of gloom and doom, but it important to note that information needs be gathered and evaluated over a large period of time before we can truly know how it will effect us. I have seen the real estate market here in Celebration, FL stabilize and become competitive again over the course of the last 18 months, but I can not use the conditions here to paint a broad picture. That’s why I stay on top of the national numbers, and it is great to see that the trend we are experiencing here is making its way through all of Central Florida and on to the rest of the country as well.
As the saying goes, “There is no time like the present.”
Information about how the Pending Home Sale Index rose for the second consecutive month in 2010.
The real estate market is one of the most popular topics featured in the news. Whether the news is good or bad, we are riveted. For the majority of us, our home is one of the biggest investments we will ever make, and so the information affects us both emotionally as well as financially.
My goal with this blog to engage you as well as provide information. I welcome your questions and feedback and hope you will take this opportunity to gain further knowledge and share your experiences.
“Pending Home Sales Rose For The Second Consecutive Month”
One of the most talked about topics in real estate news yesterday was the press release regarding the Pending Home Sale Index. According the National Association of Realtors, the Pending Home Sale Index rose for the 2 second consecutive month.
I find it amazing that the media only seems to publish negative real estate news. Everything on the front page of the news is always doom and gloom – foreclosures everywhere or decreasing property values. The reality is that I have seen a considerable amount of upward progress in the real estate market since the beginning of the year.
The interest rate has stayed consistently low (4.32% wow!), and the inventory has shrunk accordingly as buyers have jumped back in to take advantage of the opportunities out there. The most important thing I believe that is not reported is that homes priced at market value are selling and selling quickly. As someone who is entrenched in the real estate market everyday, I see a lot of positive strides being made.
Even with the vast amount of “news” out there, sometimes it is still hard to see the whole picture! If you’re looking to buy or sell a home in Central Florida, contact Nectar Real Estate for the help of a knowledgeable Florida Realtor.