Ready to Adjust.
We've grown accustomed to the quick rhythm of a fast paced market and as we move into a more traditional pace, buyers and sellers alike need to be ready in order to be successful.
We are heading deeper into the Fall selling season and it's becoming more evident to our experienced team that all of us must be READY and able to ADJUST. Much like the turning colors of our leaves, our market has been slowly revealing signs that change is coming. While a lack of inventory and higher home values continues to create an urgency in our local market, we have witnessed a slow down in competition among buyers. Higher, but not high interest rates, a change of seasons with the back to school rush, and a shift in priorities has slowed our market pace to a more traditional rhythm.
But do NOT confuse this with a down market.
Our year-to-date statistics show the number of new listings entering the market is trending upward from this summer as well as the number of sales. The trend in sales price and sale-price-to-original-list-price ratio is dipping slightly downward but with less days on the market.
Within the day-to-day experience of working with active buyers and sellers, our team is seeing the continued ups and downs of a market that does not treat all homes the same. Each price range competes differently and condition and home preparedness matters.
Being Ready & Able
Makes All the Difference
for Buyers and Sellers Alike.
For sellers, this is still a great time to sell, it just means being prepared. In a traditional market, the first impression of a home is lasting and impactful. Those considering selling this Fall and Winter should consult their local professionals, such as Team Clancy, to ensure their home hits the market ready to be SOLD. Fresh paint, new carpet, and a deep cleaning can make all the difference, and some homes need more or less care. The ability to adjust as our market takes its own twists and turns is also a key to success. While home values remain higher, we are seeing small dips in the average sold price as well as in sale-to-list ratios.
Buyers can expect a similar, more careful approach to this traditional market and being READY with expert guidance is an essential piece of the buying puzzle. But being prepared isn’t just about pre-approval with an experienced lender, although it’s crucial to buying success in this market, it’s more accurately about market education. Understanding buying power and how it fluctuates with interest rates as well as different loan types can make the difference in the approach to homebuying as well as prioritizing needs (vs wants) and understanding how a home is priced. Buyers in our current market can expect to be more successful when being prepared PRIOR to looking at houses for sale and remaining open to adjusting as the market takes its own liberties.
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Understanding Your Own Budget
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Cosmetic vs Necessary Updates
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Priorities - Needs vs Wants
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Looking Past a 1st Impression
All information deemed materially reliable but not guaranteed. Provided by Greater Kalamazoo Association of Realtors.
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.
