What Does Selling Look Like in 2023?
Mortgage Rates may be at the top of news headlines but while they remain in the single digits, it is NOT affecting the lack of inventory and necessity to move. Buyers are still buying, inventory is still limited, and home values are still up.
WHY do buyers continue to buy while rates go up and inventory is lacking? Because real estate is still a good investment and owning a home FIXES the cost of a roof over your head while rental costs can go up dramatically. A fixed cost of living is a considerable staple while inflation drives pricing up around us.
What does that mean for YOU who wants to SELL? It is still a great market to sell a home in.
Latest Market Trends
All information deemed materially reliable but not guaranteed. Provided by Greater Kalamazoo Association of Realtors.
Buying a Home in 2023
RATES...They're not everything they're making them out to be. While mortgage rates are in fact on the move this year, most recently on a slight incline, rates are not as high as the average consumer believes and still hover BELOW the 20-year high that we saw in the Fall. In fact, professionals are predicting rates to trend downward over the long term.
What does that mean for our local real estate market? Real estate is still a good investment and owning a home FIXES the cost of a roof over your head while rental costs can go up dramatically. A fixed cost of living is a considerable staple while inflation drives pricing up around us.
Buying a home in a seller's market can be a frustrating process if you aren't prepared. How do you prepare? Here are some tips to get you ready to buy in today's fast-moving seller's market:
Price: Be Ready to Make a Strong Offer
Chances are, you will already have a price range in mind when you start your home/property search. In a normal market, you leave room for negotiation, your initial offer is often at the bottom of that range. However, in a seller's market, one can’t expect to go about it that way. Since you’re going to have a lot of competition, the price you initially offer may be your only shot at that property. In a seller's market, we tell our clients to be prepared NOT to get a 2nd opportunity to make an offer or negotiate. Make certain your offer is a strong contender, free of unnecessary contingencies as well as risk & uncertainties that will make the sellers uncomfortable. MAKE YOUR OFFER EASY TO SAY YES TO!
If you don't want to miss out on a property you love, make sure you are pre-approved for a loan BEFORE beginning your home search. Seller's will take you, and your offer, more seriously if you are pre-approved.
Most offers have 3 contingencies: loan approval, appraisal acceptance and satisfactory inspection results. These contingencies, if not fulfilled, allow a buyer to terminate a contract to purchase and retain all of their deposit money. There’s nothing worse for a seller than having their property tied up for a long period only to have things fall apart. Not having additional or high risk contingencies, minimizes the seller’s exposure and makes your offer look all that much better.
Also, ensure that your offer is NOT contingent on selling your current home. With buyer competition strong and multiple offer situations prevalent, sellers will likely choose to pass on your offer (even if it is higher than the others).
Bridge Loans Available
A bridge loan can help ease the transition from one home to another.
While today's market favors sellers, NOW is still a great time to buy! Real Estate is still a good investment and fixes your shelter costs while rental rates go up.
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