As the weather heats up, so does the housing market. Now that we are halfway into 2018, we’ve identified two important factors for buyers and sellers in this year’s market: low inventory of homes and low mortgage rates.
Low inventory. This means the supply of existing homes on the market is low, compared to the demand from homebuyers, which has created a seller’s market.
Low mortgage rates. Though rates are slightly higher than last year’s rates they are still at historic lows.
The best advice on buying a home in this seller’s market is that homebuyers should be prepared to act quickly.
Make sure you are pre-approved for your loan. This makes you a qualified buyer, which is more attractive to sellers.
Here are the expert’s tips on navigating the 2018 real estate market.
If you’re buying
• Work closely with W Realty and a mortgage banker who recognize the need for speed. You don’t want to miss out on an offer because another buyer was faster.
• Get your mortgage banker to prequalify you so you know how much house you can afford from the start. This empowers you to write a purchase contract.
• Lock your mortgage rate now. Rates could head higher before the year is out.
• Don’t expect drastic discounts even if the property needs work. Most sellers already realize the home needs work and have accounted for it when pricing the home. Trying to discount an already discounted home could cost you the home you love.
If you’re selling
• Even though it’s a seller’s market, don’t price your property too high. Aim for the high end of the realistic range. There is an ideal time frame in which to sell a home and it usually falls within the first few months the home is on the market. Too many days on the market means you may have to reduce the price lower than market value to get the sale.
• Work with a broker who focuses on presentation – staging and decluttering – and gives you consistent feedback. Anything that can differentiate your property will be of great value.
• Make sure your home has superior web exposure and is presented well. Almost 85% of buyers use the Internet to search for a home.
Now is a great time to get into the market. If you’re thinking about buying or selling soon, contact us at W Realty. We are here to help you every step of the way!