An Honest Approach to the Market
What is the market really like? Time to Sell? Time to Buy?
We are having a lot of conversations with sellers right now and we'll be honest; we're not telling them all to list right now.
Not all homes are ready to hit the market and not all sellers are prepared to sell. Buyers are looking but not all of them are ready. Our current real estate market requires preparation and an honest, professional approach.
Market Stats
Across the country, the real estate market is being pushed around by two major factors that you've met before: higher interest rates and low housing inventory.
Mortgage Rates
The latest in mortgage rates may actually surprise you if you have checked in in the past few weeks. For the forth time in five weeks, rates are dropping and the number of mortgage applications in the U.S. are up. The market remains competitive for buyers.
Home Values
Demand continues to outpace supply and to support higher sales prices. Nationally, the median price of an existing home was up 3.4% in October compared to the previous year. In Michigan, this statistic was closer to an increase by 5.4%. Across Kalamazoo County, the median sales price was up 5% in the year over year comparison with the number of units sold remaining the same.
New listings hitting the Kalamazoo County market? Down by 10% year over year last month.
All information deemed materially reliable but not guaranteed. Provided by Greater Kalamazoo Association of Realtors.
Should You Sell or Buy Right Now?
Start with an Honest Approach.
We'll be honest; it depends. Selling and Buying a home is an extremely personal decision. The need to move and varying priorities and personal finances puts each seller or buyer in their own category.
Trying to predict the market is not the best approach to real estate.
The best approach is the is the realistic one.
Have you had that honest conversation yet? Whether it's analyzing your own priorities, discussing with your family, or speaking to a mortgage and real estate professional, the decision to sell and buy starts with an honest look at many factors.
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Does speed of sale rank higher than price of sale?
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What condition is your home in? And which projects are your priority?
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Where are you moving and can you afford to move?
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What is your current financial situation and have you spoken to a trusted lender for the most up to date mortgage pricing?
We are having these conversations with our sellers and buyers and many are PREPARING to move. Are YOU?
Buying a Home in a Traditional Market
The lack of competition on both sides of the for sale sign offers a slight relief for buyers, creating a little more wiggle room to shop. Although finding a home that fits your needs and budget can still be a challenge (some price points and ready-to-move-into homes are moving quickly) higher interest rates are keeping some home buyers browsing online making the competition a little lighter. With the right real estate team behind you, you can find value in our current homes for sale.
Buying a home in a seller's market can be a frustrating process if you aren't prepared. The market may be shifting to a more traditional style but you still have to be prepared. 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!
Pre-Approval
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.
Contingencies
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.
