THINGS TO CONSIDER WHEN SELLING OR BUYING A HOME IN THIS MARKET

What’s News in Real Estate

It’s no secret – the word out on the street is … There has been no better time to sell your home than now!”   I would just add … the best time to sell your home is when the time is right for you – but looking at it from a value/equity standpoint – now truly is the best time!  You may be pleasantly surprised to find out just how much equity you have in your home right now, then the question becomes … for how long?  If you haven’t had a Home Market Analysis done on your home recently, you may just want to add this to your to do list!  Knowing your home’s value may shed some perspective that could help you to make those decisions that are best for you and your family.  

We all become “stuck” in place when we don’t have all the answers or some type of plan in place on how to “move forward” in whatever life’s decisions we are faced with, right?   Being a homeowner myself and having moved several times throughout the years, it can certainly be challenging for many different reasons.  The BIG elephant in the room syndrome … the how, what, where, & what do I do first – that keeps you stuck in your tracks.   But what I have learned in life, as so many of us have …  having the knowledge, support, and a plan in place can only help us to make our decisions on how best to move forward with just a little more clarity.  The real estate market is challenging for both buyers and sellers, no doubt. Below are just a few of the many questions I hear from my clients when talking about buying or selling a home …

Sellers:  

  • Should I put my house on the market before I find a home, or do I find a home first?
  • If I put my home on the market first, what happens/where do I go if I don’t find a house once my current home is supposed to close?
  • The home prices are so high – I don’t want to “pay” TOP dollar for a new home, after my current home sells. 

All good questions. Having these types of conversations with an experienced Real Estate Advisor prior to putting your home on the market will give you the opportunity to have any, and all questions answered and concerns addressed.   It will give you perspective of the market and an opportunity to discuss some creative options and plans that you may not have thought of or considered.  In this market it is important to think outside the box!

Buyers:  

Supply & demand certainly puts buyers in a position in many cases of having to choose whether to “pay more” or not to get the home due to multiple offers then in any other market – the only perspective to that I can give is this …

We only know what we know now.  If it is your desire to purchase a home now for “your reasons” – and we all have them – then we need to put ourselves in the best buying position possible and get creative in our offerings, in the hopes of having the seller accept your offer.  This can be done in many ways, and it is not always going to be about the $’s, although – I won’t lie, that will be one of the BIG keys to having a seller accept your offer.

Keep in mind, with interest rates on the rise, and home prices not looking to go down any time soon, you need to look at your “bottom line”.  What I mean by that is – look at your monthly mortgage payment.  It’s all about the monthly payment that you are comfortable with and are qualified/pre-approved for to purchase a home via your mortgage lender.  I know it’s difficult, but try not to focus so much on the home price but rather your budget/monthly payment, as home prices will always go up and down over time.  While interest rates are rising and expected to rise throughout the year, will only give you, the buyer less buying power … what you could afford 6 months ago, for example may be different today.  Some buyers may say or think, “I’m going to wait for the home prices to go down” – while that sounds like a good plan … we only know what we know now.  So, if it is your plan to purchase a home – you may want to seriously consider doing this now before the interest rates really price you out of the market.  Having said that, it is important to get “re-qualified” on your mortgage if your pre-approval is more than a couple of months old.  Stay in touch with your lender, during your home search process to ensure that your pre-approval is up-to-date. You don’t want to have any unwanted surprises after the seller has finally accepted your offer!

There are many moving parts to buying and selling a home.  You need the guidance of an experienced, trusted, Real Estate Advisor … that would be me!  One who will give you the information you need, along with the perspective, guidance, and support on how to “move forward” or not, based on your personal circumstances. 

If you are interested in scheduling a Home Buyer or Sellers Consultation, or would like to learn your “Homes Value … I offer a complimentary Comparable Market Analysis which will illustrate to you – where your home stands in today’s market.  

Feel free to reach out – I am here to help!

Helping buyers and sellers achieve their real estate goals!

GETTING FROM HERE TO THERE … WHERE DO I GO WHEN MY HOME SELLS?

One of the TOP concerns I hear from sellers, and rightfully so, that will sometimes give them pause when considering whether or not they should put their home on the market given the lack of inventory many of the buyers are now struggling with. Where do I go once my home sells?” Great question!   Some sellers may have it all thought out and have a plan already in place.  Perhaps they are snowbirds and live in their Florida home during the winter months for example, and now they have made the decision that when their current homes sells, they will make their Florida home their forever home. Or perhaps they are combining households, with their significant other – and will no longer need two homes.  But the reality is, most sellers will fall into the category of having to sell their existing home to purchase their new home.  This sometimes can feel a little overwhelming.  Here are a few options sellers can consider to make their move from their current home to their new home possible.

Option one – have a short-term rental in place in the event you have not located the home you wish to purchase after your current home sells.

Option two – plan to temporarily move in with family members while moving your belongings in storage until which time you secure a new home.  This option, if possible, not only gives you the gift of time to search for the “perfect home” (not feeling pressed to settle for a home you might not have chosen otherwise.)  It also allows you to save additional money to put down towards your new home purchase, while making you a more appealing and qualified buyer in the eyes of the seller.

Option three – If the buyer has the time to wait on their move … have an agreement drafted between the buyer and seller which would allow you (the seller) to rent-back to (the buyer) after the home closes.  This agreement would be for a certain timeframe agreeable by both parties.  This strategy will enable you to close on your current home, giving you the cash out equity needed to put down on your new home purchase.  This could potentially put you at the TOP of the list when seller is choosing which offer to accept when in a multiple offer situation. This strategy makes you a more appealing buyer in the eyes of the seller since your new home purchase will not be contingent upon your current home sale.   This strategy will also allow the buyer to secure the home they wish to purchase while getting ahead of the already rising (but still very low) interest rates.   It is a win-win-win for both buyer and seller, but certainly a strategy that may not work for everyone. Should you choose this option, it would be my recommendation to consult with your attorney, so you are informed from their legal perspective. 

Option four – another option would be for the seller to choose a buyer who is willing and able to give the seller extra time before closing on their current property by extending the closing date out, for an agreed upon timeframe.  This option will give the seller more time to locate their next home, so they don’t find themselves moving twice.  While this is the best and easiest option for the seller, there needs to be a clear understanding of what that time means to both buyer and seller should the date stretch out longer than anticipated.  In some cases, and especially in this market, sellers are receiving multiple offers – if the seller has not secured another property prior to their sale, they may be more likely to accept an offer where the buyer will give them that gift of time as part of the contract terms.  There are many parts of a buyers offer that can be enticing to the seller, and it may not always be about the $$’s, but in some cases the terms will be just as important and valuable to a seller.  

As your Realtor, we would discuss your specific real estate goals, and formulate a plan to help you achieve those goals.  We would discuss , the pros and cons on any or all of the above options should a “Plan B” need to be put in place that will enable you to literally move forward with your next home purchase.  

Helping buyers & sellers achieve their real estate goals!

INTEREST RATES ARE PREDICTED TO BE ON THE RISE FOR 2022 … WHAT YOU NEED TO KNOW.

First, let me start off by stating … I am in no way, shape or form a mortgage representative.  I have been a Realtor for 19+ years, working with buyers and sellers assisting them to achieve their real estate goals … so it is from that perspective I speak.   

With all indicators pointing towards the rise of interest rates this year, there are a few things you should be mindful of if you are in the market to purchase a home.  While interest rates are predicted to rise in 2022 … it is important to put that into perspective.  The average 30-year fixed rate mortgage is currently at about 3.0%.  I repeat … the average 30-year fixed rate mortgages are currently at about 3.0%.  The prediction is that they are expected to inch their way up to about 3.75% by years end.   Mortgage rates are and have been at an all-time low, which has given buyers more buying power to purchase a home.  It is most buyers perspective, that if I save” more, towards my downpayment, I can “afford more,” but in this case … not necessarily. Important fact: Statistics will show that higher/lower interest rates will affect your monthly payment more so over then the amount of your downpayment. With interest rates inching their way up – it is important that buyers know what they will qualify for now vs. later in a mortgage.  This will be especially important for first time homebuyers trying to get into the market.  For anyone looking to purchase a home, there’s nothing worse than setting your sights higher than your budget will allow.  

The need will always exist for people to sell or purchase a home.  Especially now with the increased flexibility of remote working, there has never been more a need for additional living space to allow for that home office. Perhaps you are relocating from one state to another, a first-time homebuyer, a move-up buyer, or downsizing for ease of living and/or retirement … the need will always be there with many of the lifestyle changes we all go through.  

My best advice to you …  stay in touch with your mortgage representative to ensure that with the expected rise in interest rates your expectation of what your budget will allow you to afford in a home is what it should be.  This will ensure while working with your Realtor that your home search parameters are set correctly.  The rise in interest rates is expected to be in small increments throughout the year, with the first set to be in March.  So, if you are thinking of purchasing a home this year, you may want to get that process in motion.  First, get pre-approved for a mortgage, so that you have that pre-approval letter in hand when you start your home search. And then, work with a local real estate professional to assist you in finding the home that will best suit your wants and needs.  Yes, it is still a seller’s market, given the current lack of inventory, and home prices are still on the rise.  With that in mind, you need to be ready for when that home comes on the market that says “Welcome Home” to you!

Helping buyers & sellers achieve their real estate goals

REAL ESTATE SNAPSHOT – A QUICK LOOK BACK AT 2021, AND WHERE WE MAY BE HEADING IN 2022

We can all agree that the real estate market in 2021 was one like no other.  Who would have thought that the pandemic could bring upon such a home buying & selling frenzy as it did?  Well soon to put 2021 behind us …phew, and as we all look forward to a much brighter 2022 on SO many levels … here is just a snapshot of what you can expect to see from a real estate standpoint looking ahead to 2022. 

Word on the street says … all indicators suggest we should expect that 2022 will continue to be a strong real estate market.  Make no mistake, 2022 will continue to be a seller’s market no doubt, as home prices are expected to rise … but at a much more moderate pace then we saw in the real estate frenzy of 2021.  The driving force continues to be “supply & demand.”  Buyer demand is still very high with some of the “2021 buyers” still in search for their “place to call home.”  Many missing out on a multitude of bidding wars in 2021, now with high hopes of a “win” for 2022.  As more homes are expected to come on the market, the competition will start to ease a little which is good news for the buyers as this will ultimately ease competition a bit and slow down the rise in home prices for 2022.

Interest rates are predicted to be on the rise for 2022 to about 3.7% by year end, but certainly still at an all-time low.  Nonetheless an important factor to keep in mind as you decide when will be the best time to buy or sell.  

For the Buyer – As you see more homes come on the market, you should see an ease in the “multiple offer” frenzy that was experienced in 2021.  That’s not to say multiple offers won’t happen, but perhaps a little less as was the frenzy in 2021.  Having said that – if your serious about wanting to find your place to call home … mbest advice to you would be to reach out to a reputable mortgage lender to get pre-approved for a mortgage.  This will put you in the best buying position so you can be ready to make your offer when that perfect home does hit the market.  With interest rates on the rise, your buying power may be less then you think as we make a way through 2021, so you want to make sure you know what you are qualified to purchase and have your approval letter in hand to make that offer the seller will be most accepting of.  

For the Seller – On the flip side … while it is still a seller’s market, and should remain such throughout 2022, selling your house while buyer demand is high is key to getting your home sold for the highest price with the best terms.  I would just caution you to not wait too long if selling your home is really your end goal. With more properties expected to hit the market, and with interest rates on the rise, your window of opportunity won’t last forever. My advice to you would be to reach out to a local real estate professional to discuss your specific wants and needs and to answer any questions or concerns you may have, so you can decide if putting your home on the market in 2022 is the right move for you.  

Working with buyers and sellers to help them to achieve their real estate goals.

My Wish For You This Holiday Season

My wish for you this Holiday Season would be for you to receive the gift of TIME! In today’s world, many of us are guilty of getting caught up in our busy lives that we don’t take enough time to share life with the ones we love. Now especially, with the Holiday Season upon us, we have so much more to do, we forget what’s most important in light and spirit of this special time of year! 

Let us not forget that life is too short, and we can’t take back those days of “would have and should have’”. Let us remember to live in the moment…. because as we all know, these moments are much too precious to let go by! 

So, if there are no other gifts you give this holiday season …. give the gift of TIMEto you and to those you love… sharing those special times with family and friends… for this is a priceless gift that will live in your heart and the hearts of others forever! 

From my house to yours … 

Wishing you all a very Merry Christmas and a 

Happy, Healthy and Prosperous New Year!