As home sales continue to be slow, many buyers and sellers are asking what it all means to them. For months now, the lack of inventory has been considered the biggest contributing factor for the low sales. We are beginning to see a rise in inventory but still sales remain flat. This could be attributed to the fact that as prices and interest rates rise, home affordability decreases which forces many would be buyers out of the market. Here are some tips for both buyers and sellers to help them in this ever changing industry.
Buyers:
1. Get prequalified before you begin your search. Contact your lender and find out how much you qualify for. They will run your credit and crunch your income and debt numbers to determine the amount of loan you will be able to get. You will find out what closing costs, down payments, etc. are required as well as what your estimated monthly payment, taxes and insurance will be. You need to know this going in. There is nothing worse than falling in love with a house only to find out you cannot afford it. (If you need help finding a lender, let me know. I work with some very knowledgeable and reputable lenders who would be happy to get you started.)
2. Start early. Don’t wait until you have to move to begin your search. Buying a home is a process. Once you are prequalified start to look. Research what neighborhoods you would like to live in and what houses are selling for in those areas. Begin to see what your budget is going to get you. With low inventory you may not immediately find what you are looking for. Be patient but at the same time realistic. When you do find your home you will be educated and able to write a strong competitive offer. (When you know your budget and what area I can send you market reports, new listings, and recently sold prices to help you with your research.)
3. Have a plan for your current home. Do you need to sell your current home in order to qualify for a new purchase? If so, you should have a plan. Ideally you would sell the current home first and purchase your new home with a cash offer but if moving to a temporary home for a couple of months doesn’t suit you, there is a way. I recommend that you put your current home on the market first and find a buyer for the home with the understanding that the sale is contingent upon you finding a new home. Once you have a buyer in place you can then write an offer on a new home. A buyer is more willing to wait for a close of escrow than a seller typically is. So having your current home in escrow makes your offer on a new home more appealing to the seller. (If closing concurrently on both homes is appealing to you, call me to get your current home on the market and start the process.)
Sellers:
1. The Price is Right. Pricing a home at market value is crucial. You need to do your research and determine what comparable homes in your neighborhood are selling for. You need to be honest and realistic when doing this. Keep in mind the value of your home is not determined by what you owe on the home. Improvements you have made to the home may add value but not necessarily the actual amount you paid. (I can provide you with comparable homes that have sold, a list of your closest active competition and assist you with determining the market value of your home.)
2. Put on a show! Make your home appealing to buyers from the start. Make sure your home is clean, clutter is put away, repairs are done, and landscaping is neat. You want those listing photos to look great! It is the first impression of your home the buyers are going to get. Make sure your home smells good, is neat and that pets are secured for showings. (I would be happy to come by and give you tips on what you can do to make your hoe more appealing to buyers.)
3. Be available. Make showing your home easy and comfortable for buyers. Yes, having strangers tromp through your home can be tough but it has to happen. Allow agents to show your home with short notice and in the evening after work. When prospective buyers are viewing your home, if you are there step outside and allow them some space.
Buying and/or selling a home can be an emotional experience. It is imperative that your keep emotions in check, do not take things personally or be insulted if someone disagrees or doesn’t give you what you want. This is a business and you cannot allow emotions to cause you to make a poor decision. Research is key for both buyers and sellers. You need to know the market value of a home so you can make decisions based on facts not emotions. Keep a level head and do your homework, together we can make your real estate dreams a reality!
