Bloomington is definitely one of the hottest real estate markets in the country, this is definitely a sellers market nationally. A
Illinois’ population decline reached record levels in 2021 as the state’s population dropped by 113,776 residents from July 2020-July 2021.
Population decline was widespread during the year, affecting nearly all areas of the state as 81 of Illinois’ 102 counties saw population losses, according to U.S. Census Bureau estimates released March 24. But McLean County saw an increase in population.
“Part of the strategy now in being a listing agent is putting a price that will attract multiple offers, not necessarily the price you believe the house will bring. I see a lot of people thinking ‘wow that guy really underpriced that house,’ did he? Maybe it was a strategy so he could attract multiple offers to get the right price. We saw an offer that was $87,500 over the asking price that was not accepted, there were other offers, multiple offers higher than that,” said John Armstrong from RE/MAX Rising in Bloomington.
Armstrong said there’s never been an easier time to sell your home, but to get to the finish line there are things realtors are doing.
“There’s a relatively new thing called an appraisal gap, we agreed to this price, yet it appraises for $15,000 below that,” said Armstrong. “If you negotiate upfront to the best terms the seller could get you negotiating that some of that gap if not all of that gap will be covered by the buyer in addition to the down payment they will come up with that gap. For easy math let’s say you’re putting 10% down on a $200,000 house which is $20,000 and it only appraises for 190,000. Now you’re only putting 10% down on 190,000 or 19,000, but then you’re putting down the additional $10,000 between 190,000-200,000. In that instance you would be putting down $29,000 vs your already planned $20,000.”
John Armstrong said as realtors they have to look at the strengths of the buyers and make sure they are in a position to write an offer. Armstrong said is a very different world we are living in, realtors have to write offers that are going to be beautiful to the seller.
“We really have to impress the seller,” said Armstrong. “Locally there have been groups formed with local leaders exploring some of the options. Just brainstorming some of the things they could do like give some tax breaks on redevelopment areas and help a little bit with developers and producing houses faster.”
Armstrong said with new construction our prices have shot through the roof, because of material cost.
“We really have a perfect storm going on in the housing market because the material cost has gone up at a rate greater than the housing prices have gone up, then you add the rental crisis. If you’re a landlord you are already feeling this. Rent prices have exceeded the 20-25% increase from 28-30%,” said Armstrong.
Issues right now are not with the low inventory, according to Armstrong but rather there is a huge demand.
“We have employers that are hiring and expanding at 150 people a week. We have interest rates at nearly a historical bottom. The age demographic to become first time home owners,” said Armstrong. “We really have the perfect storm for higher demand and you look at the not low inventory, but homes aren’t sitting on the market. We are selling them so fast.”
