Are You Ready For The Real Estate Market?
Whether you are thinking about buying or selling in 2024 – I would ask you one question …are you ready? Below are some things you may want to think about if you are considering making the move in 2024.
WHAT BUYERS NEED TO KNOW
First step … get pre-approved … As part of the home buying process, the first step would be to get pre-approved by a reputable lender. As part of this process, the lender will look at your finances to determine what loan amount you would ultimately be approved for. The documents they would need from you for the pre-approval would include but not limited to things like your paystubs, W-2, tax returns, and bank statements. They would also need to run your credit – having all this information will assist the lender in determining what mortgage you would qualify for.
Once your file has been reviewed by the lender, and meets their criteria, they will give you a pre-approval letter based upon their review. This letter will let you know how much money you can borrow and what the terms of your loan would be. This gives you and your realtor a good understanding of your budget range that you will need to stay within. Having a reasonable expectation of what you qualify for is important. There is no sense looking at homes over your budget, getting excited about it, only to find out it’s not an option for you because it is not in your budget. Not to mention having a pre-approval letter in this market is a must and is an important first step. It helps the realtor keep a better eye on the market as he/she are in search of that perfect home for you, it also tells the seller that you are a qualified, ready, and able buyer.
Something to keep in mind … most always, the loan amount in your pre-approval letter is the lender’s maximum offer to you based upon their review and their formula to lend. After meeting with your lender, you should have a pretty good understanding of what your budget can afford, and the approval letter will be reflective of that. You will also know in/about what your monthly payments will be based upon that approval. At the end of the day, regardless of what you are pre-approved for, it is up to you to decide if you are comfortable with that monthly loan payment, or perhaps you are more comfortable staying a little under-budget if you can, providing the homes in that range meet your expectations.
While more homes are being listed for sale, the lack of inventory is still not meeting buyer demand, keeping home prices strong. This this a very competitive market, as we continue to see multiple offers on many properties, if priced well, and have no major objections. My job as a realtor when representing buyers – is to put buyers in the best position possible in getting their offer accepted over all the others.
With that in mind, let me take it a step further … There are some lending institutions that will take your file straight through to underwriting within a short period of time (few days) once you have provided them with all their required documents. What that means is that you are not just “pre-approved” – but you are “APPROVED” for the loan amount stated on the letter. This approval is just about as good as being a cash buyer – giving them that same competitive edge as what a cash buyer would have. In this market, that is worth its weight in gold. Submitting your offer with an “approval” letter attached to it is music to a seller’s ears! Having the right connections as I do in the business in key when representing my clients. If you want to buy a home this year, or any year for that matter, you want to be sure you’re working with a trusted lender.
For buyers who are looking to purchase a home in 2024 and have a successful outcome – the key to that and my advice to you would be to “be ready.”
WHAT SELLERS NEED TO KNOW
First step – speak with a real estate professional … Getting the best guidance needed from a real estate professional who knows the market well is key.
Discussing your wants/needs and real estate goals prior to “making any moves” will only help you to achieve those goals and the outcome you desire.
It is not new news, that it is still a “seller’s market.” And might I just add … experts predict this will continue through 2024. Again, the driving force to a great extent is the lack of inventory. Locally, we have the benefit of our location – proximity to New York, which helps keep our market strong. Many New Yorkers continue to move to Connecticut for many reasons, and these days – there are many more reasons to move our way. For those who know me, know I will always say when making decisions – “we only know what we know now.” So here we are, and so to that is what I can speak to now. Just to clarify – “lack of inventory” … it is not that sellers aren’t putting their homes on the market – they are … but certainly not in the numbers they have in years past. What I am seeing is just once a property goes on the market, it will get scooped up right away, if the property is priced well with no major objections. I quite often will “preview” homes when they first come on the market, because I know they won’t last. It is important for me as a realtor to know our local market, and to do that, you need to see and step inside the property as often as you can.
If sellers want to get “TOP dollar” for their home, they still may want to take a few steps in getting their home “show ready” to appeal to the larger buyer pool. This can mean from the smallest of task to something more substantial and anything in between. It is important to note that any upgrades large or small are done to with the intent to net you more equity value then it would if you were not to do anything at all. In short and to be clear – it is not necessarily that you would get dollar for dollar on any upgrade, but at the end of the day, if you are going to go through the time and expense – you want to ensure as best you can that it be worth your while to increase your equity value. It needs to make dollar sense. Knowing what to do really matters – in order of importance and budget. You may be surprised at how the littlest of upgrades can make a BIG impact affecting your bottom-line net profit. From painting, to changing a faucet or a lighting fixture – can make all the difference to making your home “show ready”. Having these conversations with your realtor beforehand would be a benefit to you as a seller, so you have that understanding and to put forth a plan accordingly.
If you don’t have the wherewithal to do anything – that’s fine too – we would just price your home accordingly with that in mind. Having a conversation with a real estate professional – that would be me, would be helpful to determining how best to move forward. That being said, the first thing I would suggest you do is have your realtor prepare a Comparable Market Analysis (CMA) for you to determine what equity you are holding in your home … you may be pleasantly surprised! Having this information gives you the perspective and understanding you will need to determine your what your next move should be.
And lastly, can I say – If you are a seller wondering where you are going to go once your house sells … let’s talk. Everyone’s circumstances are different. But knowing and understanding your particular situation, only helps me to help you get you where you want to be on time.
If you missed it …. Market Watch – 2023 year In Review
If you are thinking about making a move, but have some questions – I am happy to discuss all things real estate. Give me a call … I am here and happy to help!
Laura
The Key To Your Real Estate Success
Helping buyers and seller achieve their real estate goals