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.
For more properties, clickhere.
