Buying or selling a home in today’s real estate market, know the facts from fiction
We’re in a strong seller’s market with more buyers than available inventory. With no signs of slowing down, today’s housing market for both buyers and sellers is fast-paced and rising prices are driven by real buyer demand. Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) have all forecasted that total home sales (existing homes and new construction) will continue their momentum both this year and next.
As buyers and sellers are experiencing fatigue from the current pace – buyers having to act quickly and typically making multiple offers on homes before getting an acceptance, and sellers experiencing high traffic through their homes and then analyzing offers often by the dozen – it’s easy to get confused and overwhelmed right now. Whether buying or selling, it’s important to work with a real estate professional to be your trusted advisor as you navigate through this energetic market and to help you achieve your homeownership goals in a smart and informed manner.
5 common real estate misconceptions about today’s real estate market for home buyers and sellers:
1 – It’s better to get pre-approved after you find a home to buy
You should get pre-approved before you begin your home search so you know your budget and can act quickly when you’re ready to make an offer. A pre-approval makes your offer stronger to sellers, too.
2 – You should always start with your lowest offer when buying a home
In today’s fast-paced market, there are more buyers than homes currently for sale making it a strong seller’s market. If you lowball your offer, you may not get a second chance to negotiate or revise your offer and there’s a good chance you’ll lose out to another buyer with a stronger or higher offer.
3 – It’s better to price your house on the high side when selling
A house that’s priced competitively will attract multiple offers and likely sell faster. While overpricing your home may seem attractive in a hot seller’s market such as this, pricing at current market value (or slightly below) might be a better strategy to drive interest level and potentially experience a multiple offer situation.
4 – Renovating your house will net you more money when you sell
When thinking about selling, homeowners often feel they need to get their house ready with some remodeling to make it more appealing to buyers. However, with so many buyers competing for available homes right now, grand-scale renovations may not be as vital as they would be in a more normal market. Your real estate broker can advise you on what fixes should be made before selling, if any.
5 – It’s safe to skip the home inspection if the house looks good
You should not skip a home inspection as it may uncover hidden problems or potential issues that may cost you more down the road. If anything is questionable during the inspection process – like the age of the roof, the state of the HVAC system, or just about anything else – you as a buyer have the option to discuss and negotiate any potential issues or repairs with the seller before the transaction is final.
Let’s work together
Don’t let common misconceptions about today’s competitive real estate market keep you from achieving your goals. If you have questions about how to navigate the buying or selling process, we’re here to help.
Get in touch via the form below and let’s put a plan in place based on your timeline and real estate objectives: