7 Things Every Buyer Should Know in This Market

  The real estate market is on fire right now. More than 80% of Americans ages 18–34 said now was a bad time to buy a home, and the median home-sale price reached a record high of $365,000 in January. That’s a 28% increase from January 2019! The inventory simply hasn’t kept up with buyer demand. If you’re looking to buy a home, these statistics may seem staggering — and even frightening. That’s where we come in. In this post, we’ll go over the top seven things every home buyer should know in today’s real estate market to empower you to make the best decisions for you and your family and tackle this market head-on.     #1. It’s a Seller’s Market If you haven’t heard, it’s a seller’s market. What does this mean? Basically, when demand for homes exceeds inventory, sellers are at an advantage because competition is stiff among buyers. This often leads to full-priced offers and even offers well above the asking price. In seller’s markets, homes sell extremely fast.     #2. Be Prepared to Be Flexible You finally find your dream home. It checks off all the boxes and even comes with a killer walk-in pantry. You can’t wait to place an offer, so you call up your real estate agent to start the process. Soon, you find out you’ve been outbid by $100,000 cash! Now, not every scenario will be this dramatic. But, you should prepare to have your heart broken a time or two in this market in terms of being beaten out by other homebuyers with better offers and more capital to spend.     #3. Move Fast Interest rates are on their way up in both the U.S. and Canada. So, if you’re considering buying this year, you need to start making moves ASAP. The rates are expected to increase to as high as 4.5% by the end of the year, so the sooner you can buy a home, the better to take advantage while the rates are still somewhat modest.     #4. Find a Real Estate Agent Nobody should tackle this aggressive real estate market without a qualified and experienced real estate agent. Your real estate agent can be your biggest weapon in the fight in terms of negotiating and finding your properties before they’re listed, so you don’t have to worry about the increasing competition.     #5. Be Accommodating In a seller’s market, you are at the seller's mercy. This means that you must be open to accommodating the seller in terms of contingencies and the closing. If the seller needs more time to move or won’t oblige to any of your contingencies, you may need to be adaptable so that they don’t move on to another buyer.     #6. Appeal to the Seller In all the busyness that is today’s real estate market, it’s easy to get caught up and forget that there’s a human being behind the homes you’re looking at. Understand what the sellers want from their sale and try to appeal to those goals. If your real estate agent has a relationship with the seller's agent they may be able to better understand the seller's goals. Is it to get the most money for their home? Is it to move quickly or do they need to lease back the property? Tapping into that human side may help get your offer accepted.     #7. Don’t Give Up! Trust us. We know how frustrating this process can be. After being outbid time after time, you may want to give up but don’t! Keep your options open and your hopes high, and you will eventually find — and win the bid — on a home that will suit your needs perfectly.   FEATURED LISTINGS Get instant access to the latest properties to hit the real estate market. Click Here

View more

7 Things Every Seller Should Know in this Market

  The real estate market has been red hot for more than a year, pushing prices up in most neighborhoods. The high prices come with pros and cons, though. While it feels like a great timeto sell a house, more than 80% of young Americans (18 to 34 years old) say that now is the wrong time to buy. You might wonder, "How can I sell my home when no one wants to buy in this real estate market?" That's a terrific question. Luckily, a little preparation can go a long way in making the process easier and helping you get as much as possible for your property.     1. The Real Estate Market Is Red Hot Right Now! The real estate market is red hot right now because supply has not kept up with demand. To some extent, the short supply comes from the high price of construction materials. Developers don't want to build single-family homes when essential materials like lumber cost so much. The problem might not be as recent as it seems, though. About 12.3 million households were formed in the U.S. between January 2012 and June 2021. During that same period, only 7 million homes were built. The short supply has finally caught up as young people plan to start families and purchase their first homes. What's important for sellers to recognize is that the U.S. has about 5 million fewer houses than it needs to meet demand. That makes your residential real estate very valuable.     2. Expect to Spend a Lot of Time and Money on Home Improvements Do you plan to invest in some home improvements before putting your house on the market? Make sure you set aside plenty of time and money. Supply chain disruptions have forced contractors and construction companies to charge higher prices and work at slower paces. Many of them would love to get more work accomplished. Unfortunately, it's hard for them to source some of the materials they need to keep up with client requests. Talk to contractors now so you can get realistic price and time estimates. If you don't already have a contractor, talk to your realtor to get recommendations. An experienced real estate professional will know which renovations companies are more likely to accommodate your preferred schedule.     3. Find a Moving Company That Follows Safe Procedures A lot of cities and states are lifting COVID-19 restrictions. The virus still poses a threat, though. Make sure you choose a moving company that follows safety procedures and takes your health seriously. The movers will spend a lot of time in your home, so it makes sense to find a company that enforces safety precautions.     4. Interest Rates Will Likely Increase Soon Many economists believe that the Federal Reserve will need to increase interest rates soon to combat inflation. It's an ongoing discussion, so nothing is certain. Just keep the possibility in mind. Turning down a good mortgage offer because you demand an excellent one could end up costing you more money.     5. Have a Plan for Potentially Paying Two Mortgages "Can I sell my home at a high price?" Probably, but it might take a little time to get the price you deserve. Higher real estate prices mean that you can get more money when you sell your home. The real estate market isn't quite as hot as it was last year, though, so don't expect your home to sell the same day you list it. That might happen, but it depends on several factors, including your location and price expectations. The higher prices also mean that you will probably spend more on your next home. If your current property doesn't sell quickly, you might need to pay two mortgages for a few months. You will likely make your money back when you sell your house. Still, you should plan for a short-term financial hardship.     6. Work With a Real Estate Agent to Find the Right New Home Quickly Not everyone finds a new house before selling their current one. Other homeowners experience the opposite problem: the hot real estate market makes it easy for them to sell, but they need to find short-term housing while they search for a new house they love. You can make some of your money back when you need to cover two mortgages for a few months. You don't get that benefit when you pay for short-term housing. Work with a real estate agent so you can find a home you love as quickly as possible. You don't want to rush into a decision. Choosing a wonderful new home becomes a lot easier, though, when you have a knowledgeable realtor on your side.     7. Find the Real Estate Assistance You Need! Are you ready — or at least thinking about — putting your house on the market? Get in contact so we can help you make informed choices that will help you get a great price for your home, find a wonderful new place to live, and avoid a lot of the headaches people associate with moving!   We're Here to Help If you're thinking about selling your home, let's start by getting you an accurate picture of what your home may sell for today.

View more

5 Common Mistakes Home Sellers Make

  Just because it’s a strong seller’s market does not mean you can throw your home up on the market willy-nilly, for whatever price your heart desires, ignoring all of the best home-selling practices of days past. Even though sellers do have the advantage these days, it’s still important to avoid these top five common home-selling mistakes.     #1. Not Hiring an Agent We know you want to keep as much of the profit from the sweat equity you poured into your home over the years and all of the sentimental value. But, selling a home is not as simple as taking a few photos and listing it online. If it was, the whole profession of real estate agents would not be around. Working with a real estate agent can help you sell your house for more money and faster. According to the National Association of Realtors, the typical “for sale by owner” listing goes for about $260,000, while agent-assisted sales go for $318,000 on average.  A real estate agent is an invaluable resource during the home-selling process who will be there to guide you, give you expert tips and answer any questions as they pop up. Real estate agents are well worth the investment. So, don’t make the mistake of opting for a “for sale by owner” listing with the hope of saving a few thousand dollars. The headache and extra costs and time it takes may not be worth it in the long run.     #2. Hiring the Wrong Agent That being said, you don’t always want to hire the first real estate agent you come across. Some research is required to find the agent who’s the best fit. Start and try to find reviews or even friends and family who have used agents they recommend. This will save you the headache of hiring the wrong agent who just doesn’t jive with your goals — and the pain and time it takes to find a new agent.     #3. Not Getting Your Home Ready to Sell Even in a red-hot seller’s market, you still need to de-clutter, deep clean, and even stage your home before you list it. Make sure you fix any visible issues that will decrease your home’s value, like dripping faucets, chipped paint, and broken doorknobs and appliances. When a house is riddled with visible damages, buyers will be under the impression that there are many more issues lingering that have also been ignored. This is another area working with a real estate agent can help you in as they are primed in what buyers look for, what turns them off, and what repairs are worth it. De-cluttering and de-personalizing is another critical step to get your home for sale-ready. That means take down the personal photos, go through the junk drawer and donate any miscellaneous items clogging your closets, doorways, basement, attic, and anywhere else.     #4. Underestimating the Cost You’ve likely heard the adage, “you have to spend money to make money.” This rings true when it comes to selling your home as well, which many sellers often forget about. But, did you know the total cost to sell a home can be as much as 10 percent of the sale price when you factor in commission, closing costs, repairs, and any other buyer concessions? You may also have to pay two mortgages if you don’t sell your home before you move or pay rent if you sell your home before you find another one. So, if you’re toying with the idea of selling, let's talk about budgeting to handle any related costs as they pop up.     #5. Setting an Unrealistic Price   Just because it’s a seller’s market does not mean you can ask for an astronomical price for your house. This is another area where working with an agent helps as they have the tools, knowledge, and experience to price your home fairly based on what similar homes in the area are going for, updates you’ve done, square footage, and so forth. Despite what you may think, given market conditions, overpriced homes don’t typically sell. A recent survey found that 70 percent of real estate agents said that overpricing is the number one mistake that sellers make.     Bonus: Posting Unprofessional Photos   We’re all photographers these days with our iPhones and Instagram filters, aren’t we? Not quite. Online photos are often the first thing potential buyers will see. And, blurry, dimly lit, or otherwise amateur-looking photos will convey to them that you’re not serious about your listing and who knows what other issues they may find inside your home. Professional images will position your home in the best light (literally) and leave the best first impression possible among potential buyers who will be eager to get a glimpse of your home in person instead of being under the impression that your home is a dark cave.   We're Here to Help! Ready to list your home? Don’t go at it alone. We’re here to help get your home listing ready and sold. Contact us today to learn more.

View more