Understanding Common Real Estate Terms in Glastonbury's Competitive Spring Market

Breaking down the real estate headlines and MLS stats so you, the local homeowner, can stay informed on what matters in our hyper-local Glastonbury market.
As we head into the busy spring market, let's go over some terms we are seeing buyers add to their offers. In this competitive climate, due to such limited supply, buyers are sharpening their pencils and putting forth offers hoping to win the house. As a homeowner that probably hasn't sold in this climate, you may be wondering what these terms mean.
Large Escrow Deposit: This is a pre-payment of the amount the buyers are putting down on their loan as a promise not to be in default on the purchase and is held in escrow pending a successful closing. We used to see about 2-3%, now we are seeing escrow deposits that show the seller the buyers mean business. Buyers are putting up tens of thousands of dollars to send a clear message of seriousness to the seller.
Covering the Gap on Appraisal: Appraisal gap (delta) is the difference between what a buyer agreed to pay for a home in a purchase contract and what an appraiser concludes as the fair market value of the property. Buyers are putting up the difference should it exist.
Waiving or AS-IS Inspections: In our area, sellers are under no obligation to make any repairs post buyer inspection. Some states do require sellers to perform some repairs. Buyers can elect to waive any inspection. Buyers can also perform inspections but use an As-Is rider, signaling the seller that they are really looking for an informative approach to the inspection rather than a basis for opening further negotiations.
Hard Money Deposit: Some buyers may elect to give the deposits to the sellers prior to closing as a show of their commitment to the purchase providing the seller is not in default.
Rent Back Agreements: These agreements allow the seller the opportunity to stay in the home post-closing. This can be an attractive way to get more inventory on the market by letting the seller stay in the home to find another or take their time with a big move. That seller can then make competitive offers on homes and not be "contingent" on selling a home. Most buyers elect to have the seller pay little to no fees during this time other than covering utilities and renters insurance.
This week's look at Single-family homes
There are 26 available homes on the market in Glastonbury.
Per MLS in Glastonbury: NO homes are listed under 300k and 3 homes are listed in the 300-400k range. 1 home is listed in the 400-500k range. 3 homes are listed in the 500-600k range. 2 homes are listed in the 600-699k range and NO homes are listed in the 700-800. 7 homes are listed in the 800's and 4 are in the 900's. 5 homes are priced over 1mil. Median price per sold square foot is about $229 when looking back 365 days of homes that closed in Gbury. The median listed price per square foot was about $218.88. Therefore, we are seeing homes sell about 2% over asking when looking at the totality of the Glastonbury market. Please note, different price points offer larger percentages over asking, Glastonbury has micro-pockets of housing; whether it be a specific neighborhood or price point.
This week's look at Sales of condos
Currently, there are 2 condos on the market in Glastonbury. There are 11 condos under contract waiting to close. Buyers find condos a great alternative to the rise in prices of single family homes. The condo's fees however can make a particular complex out of reach in that those fees are considered a reoccurring debt and added to the buyer's overall debt to income ratio.
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