Well, It's both.
For buyers: Interest rates are still at record lows, so it’s a great time for buyers. However, rates are on the rise. And prices are still low, but they’re also on the rise. At this time, we’re experiencing very low inventory, so if you’re looking to purchase a primary residence or investment property, there are methods to get your offer accepted:
•Work with an energetic agent who will show you properties the first day they list,
•Offer immediately (same day) on the properties of interest,
• Make your offers clean with no closing costs, home warranty or termite clearance - if possible (VA offers are different), and have a good lender who can close a conventional loan in 21-days,
•Make sure your offer is complete with proof of funds for down payment, loan pre-approval letter, and copy of earnest deposit check,
• Make your earnest deposit 2% of purchase price, rather than the standard 1%,
•Ask your Realtor to call the listing agent and do everything they can to create a bit of a relationship, and
• Include a personal cover letter with every offer and make it good. Either you or your agent needs to plead your case as to why you want the property and why it’s perfect for you. Yes, it’s work, but it’s what we’re paid to do!
For sellers: If you’re thinking about selling, NOW is the time and it may not be this good again for a long time. According to CNN Money, CoreLogic, DSW News, and many other news sources, this housing recovery may not last long. We’re experiencing an intense spike in pricing, highest in seven years, due to a shortage in housing inventory.
However, is the shortage real?
• Some homeowners who were in a short-sale position last year, may be in equity today,
• However, if still in a short-sale position, don’t allow a foreclosure. Instead, take advantage of relocation assistance - up to $30,000 if qualified - and no fee should be charged. Feel free to call me for details,
• If in equity, and wanting to upgrade or move, determine your current market value by asking a licensed Realtor, again there should be no fee charged,
• If selling is the best option, make sure your Realtor markets your home properly by taking professional photos and virtual tours, then ask to review the MLS listing and color fliers,
• Many of the steps to prep your property for listing are simple and free, like cleaning, de-cluttering, shampoo carpet, planting & watering grass, and make it smell great!
• Other steps cost some money, like repairing the obvious fixes, broken windows, garage doors, holes in walls and painting if needed,
• Be careful to not spend good money after bad. Quite often, spending big money on remodeling doesn’t increase the value enough to re-coup,
• Sellers are getting top dollar for their properties right now, but this spike in pricing may not last. Our nation experienced record breaking foreclosures quarter after quarter these past few years, and all these properties haven’t yet the hit the market for sale.
Navigating in today’s real estate market can be challenging, so proper guidance is key, don’t rely on inexperienced family & friend Realtors, this is business. Your home is probably your most valuable asset. Make sure to choose an experienced and exceptional professional. Good luck.
For more information contact Deborah Vance, Realtor at (619) 884-8783.