We’ve seen eight straight years of strong home price growth, while also seeing record-low interest rates that have helped buyers maintain affordability. We’ve seen a steady decline in the supply of homes on the market, while also welcoming the millennial generation as over 50% of the buyers that are ready, willing and able to purchase.
While we are technically in a “seller’s market,” we are seeing unique opportunities for both buyers and sellers.
As we tip toe into 2022, we thought it would be helpful to share some tips on navigating the real estate market this year – whether you plan to buy a new home and take advantage of the low rates, or sell and take advantage of the skyrocketing home price appreciation. Take a look!
Tips for Buyers
1. Get pre-approved and know what you can afford.
We always recommend that the first step is getting pre-approved with a trusted lender regardless of the market conditions.
This allows you to have a boundary in place from the very beginning, while also prevents you from getting your hopes up for a home that you may not be able to afford.
Most importantly, a pre-approval letter will give you leverage when making an offer. We continue to mention the astonishingly low interest rates, however, experts predict that they are likely to slightly increase this year. Although a substantial increase is not expected, it is especially important to know your finances, and know them well. Connect with us for lender recommendations!
2. Decide on your must-have’s!
Because the housing supply is currently so low, it is a little more difficult for buyers to find/afford everything on their wish list.
We recommend making a list of everything you cannot live without. We would never recommend you settle for a home you’re not in love with, but this might help you narrow down what is really important to you and give you clarity in your home search.
3. Get creative in your real estate strategy!
If you want to take advantage of the low rates before they rise, but can’t afford to buy a single-family house – get creative.
Consider offsetting your mortgage by buying a two- or three-family unit property, where you live in one unit and rent out the others (House-Hacking), buy with a partner or friend, or reach out to us for details on other real estate investment strategies that might be right for your unique situation.
Tips for sellers
1. Price your home competitively.
If we have learned anything from the past few years, it’s that some buyers are willing to pay almost anything for the right home.
Some seller’s think that this is a license to list their home well-over market value. While you certainly CAN do that, we’ve found that pricing your home competitively may result in a number of offers, some potentially in excess of the list price.
A wildly overpriced home will not generate interest/showings, and you are more likely to have to reduce the price anyway. Pricing it right from the start will serve you better in the long run, and hopefully speed up the process if you’re in a hurry to get it sold.
Both in-person and online: Active buyers and their agents are constantly on the lookout for new listings. Beautifully staged homes are more likely to receive top-dollar offers!
Professional pictures, a clean and tidy living space, trimmed and pruned yards and good lighting can make all the difference when it comes to the perceived value of your home. Do yourself a favor and stage it for success.
3. Set the minimum price you will accept.
It is important to establish from the beginning of the selling process the absolute minimum price you will accept on your home.
Your agent will help you determine your estimated net profit before your home hits the market, so this is a good time to make this decision. Greed can be blinding, and it is easy in a multiple offer situation to want to negotiate every dollar. If you have a minimum set from the beginning, this will help you see the bigger picture and not get lost in negotiations.
Regardless of when you decide the time is right for you to buy or sell, it is most important that you are working with an agent that you trust and has your best interest in mind. An agent is there to ensure that you get the best deal possible, and help guide you through the process.
Check out our buying process, or selling process if you are in the market! Call or email us to connect. We are here to answer your questions, assist you with your real estate needs or recommend to you some of our most trusted home service providers.
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