In any typical year, clients are going to ask standard questions, and I’m going to be able to give them somewhat standard answers.
As we know, this is no typical year for the U.S. real estate market.
With so many things happening with the economy, politics and pandemic, clients are armed with a lot of complicated questions. It’s my job as the market expert to answer them to the best of my ability, and have the insights to support my reasoning.
By answering the biggest questions in today’s housing market, I’m helping clients navigate a complicated market, prove my value, and ensure all parties involved are set up for a successful 2021.
Is now a good time to sell?
OK. So this one I get asked a lot. But with everything happening right now, I can’t rely on any standard answer to do the trick.
In short, yes. This is a good time to sell.
Here are the biggest reasons why:
- Inventory is still at record lows, with buyer demand at record highs. Anyone who wants to sell their home will be in a good position to do it quickly and for a good price.
- Low mortgage rates mean this is the perfect time to move up or downsize your current living situation for an affordable price.
- In such a competitive market, the seller has the upper hand. This can be advantageous when it comes to negotiating terms, repairs, moving dates, and more.
What if I sell my home but I’m not able to find a new one to buy?
This question has come up a lot this year, and for good reason.
Many potential sellers are concerned that if they do decide to sell their home, they won’t be able to find one to buy in time for closing.
This is a good time to highlight my negotiating tactics as a trusted real estate professional, availability, and commitment to helping you find a house that meets your needs in a timely fashion.
It’s also important to note that while pre-owned inventory may not be plentiful, the new construction homes hitting the housing market are a good option to explore.
Plus, closing dates are negotiable. Especially in a competitive market. And there are loan options out there that let you buy a home before you sell yours, something that could bring peace of mind to a weary seller.
Home prices are high right now. Should I wait to buy?
Affordability is one of the hottest real estate topics of 2021, and there’s a lot of misinformation floating around about what exactly that means for homeowners.
It’s easy for a potential buyer to assume that increasing values equates to decreased affordability. But there are actually a lot of different factors that determine that-not just the price.
If a lot of foreclosures hit the market, will that bring down home values?
Another big concern from potential buyers and sellers this year is that the homeowners that entered forbearance due to the pandemic will foreclose.
This is concerning for two big reasons:
-a buyer doesn’t want to purchase a home at the height of the market to then have values drop
-some homeowners may put their selling plans on hold to wait out the market
However, banks are unlikely to let what happened from 2008-2012 happen again, especially when the real estate market is playing a big part in our economic recovery.
In order to help calm your concerns about this, here are three reasons why:
- Nearly 30% of borrowers in forbearance are still current on their mortgage payments.
- Banks likely don’t want to repeat the mistakes of the Great Recession. This time, many will instead negotiate a modification plan with the borrower, which will enable households to maintain ownership of the home.
- With the amount of equity homeowners have today, many will be able to sell instead of going into foreclosure.
While every market is different, it’s important to remember that most homeowners base their decision-making on what they gather from the media. When explaining complicated topics with my clients, I always rely on visuals, market experts and data to back up my answers.
An informed buyer or seller is a confident buyer or seller. It’s my job to make sure you’re equipped with the best information. Thinking about buying or selling yourself? Give me a call! I’d be honored to answer all your real estate questions! (616) 447-7045
Article Source: Keeping Current Matters