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Published Jan 6, 2023

330 | Is there a Housing Market Bubble?

Explore current housing market trends with Paula Pant as she joins Brad Barrett and Jonathan Mendosa to examine if we are in a bubble, tackle home buying strategies amidst rising costs, and share investment insights on optimizing property portfolios and managing capital gains tax.
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  • Competitive Offers

    Navigating the competitive housing market requires strategic offers. emphasizes the importance of contingencies, advising against waiving financing contingencies unless you have the cash on hand 1. She explains that buying a home "as is" means waiving the right to ask for repairs, but not waiving the inspection itself, allowing buyers to make informed decisions 2. notes the current market's intensity, reminiscent of the 2006-2008 era, and highlights the need for tactical approaches to both buying and selling 3.

    You are lowering the risk for the seller by as many of these contingencies as you waive.

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    These strategies help buyers stand out in a crowded market while protecting their interests.

       

    Appraisal Issues

    Appraisal issues present significant challenges in today's housing market. explains that appraisal contingencies protect buyers by allowing them to back out if a home doesn't appraise at the contracted price 4. However, waiving this contingency can strengthen an offer, provided the buyer can cover any appraisal gaps 5. highlights the difficulty appraisers face due to fluctuating market conditions, which can lead to discrepancies between appraised values and offer prices 6.

    If you do have an appraisal contingency, then what that means is that if it does not appraise at the contracted price, then you do not have to go through with the purchase.

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    Understanding these dynamics is crucial for buyers to navigate potential financial pitfalls.

       

    Contingency Management

    Managing contingencies effectively can make or break a real estate deal. stresses the importance of never waiving the inspection contingency, as it provides critical insights into the property's condition 7. She also discusses the buyer's general right to terminate, which allows contract cancellation for any reason within a specified period, though waiving it can signal confidence to sellers 8. adds that in a competitive market, these strategies can differentiate serious buyers from others 9.

    I will never, ever, ever waive the inspection contingency.

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    These tactics help buyers secure properties while minimizing risks.

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