The Shifting Market Part 1
The market is shifting once again. Here is some advice for both sellers and buyers as we all navigate through the changing market.
Advice For Buyers:
Be Patient. Whether a hot or cold market, buyers don’t need to rush to get into a property. There is still a lot of time, maybe 1-2 years, before the interest rate and prices start to rise. If the buyer doesn’t find a property now, there is every chance of finding it down the road, especially as banks release more foreclosed properties into the market. There has also been a slow increase in new construction.
Check the Comps. Ask your Realtor to check what has sold in the last six months, in the neighborhood, before making an offer. Compare the sold properties to the property you are interested in, comparing bedrooms, bathrooms, location and condition, etc.
Know your maximum limit and stick with it. Before making an offer, the buyer needs to know what their highest amount is that they can offer, especially in case there is more than one buyer making an offer on the same property. The seller may counter, giving the buyer an opportunity to submit their highest and best offer. If there is no competition, the buyer may consider an offer below the list price. But as stated before, check the comps.
Get preapproved for a mortgage. In this market every offer is to be accompanied with an approval letter from the lender. Buyers who have gone through the process are considered better candidates when making their offer. Sellers will seriously consider the offer that has a preapproval from the lender as opposed to offers that do not, even if the offer price is lower. Once a buyer is preapproved the Realtor can show properties within their price range.
Look for “Advice For Sellers” next month.
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