Summer Homebuying Tips

It's a tense spot this summer. The amount of homes that are available for sale is growing, but it is still extremely low, and the high mortgage rates have forced many buyers who are interested out of the market. These high rates have led many homeowners to remain in their homes which is a factor that has limited the amount of homes available that are available for sale. These mismatches in the market for housing pose unique challenges as well as opportunities for buyers and sellers.

Pricing Is Key For Sellers

The price for listing is the most crucial aspect for sellers to do right. Homes are more likely to garner significantly more attention online and traffic when they are first advertised than if the seller decides to lower the price. This implies that putting up an excessively high price and then lowering it later in order to attract more attention could cause a backlash. With fewer home buyers in the market, it's crucial to set a reasonable price in the beginning to attract buyers. This method can result in multiple offers and result in the most competitive price.

Selling Before Buying Can Minimize Risk And Cost

Another factor to be considered for sellers is the decision to decide to sell first or buy first. In the case of high interest rates in the market, it might make sense to first sell, make a move to a rental for a short period, and then buy your next house after you have a clear idea of how much you can afford by the proceeds of the sale. This approach avoids several risks, like with a high-interest bridge loan or putting in an offer on your next house prior to knowing how much you're able to pay. This could put you in a better situation when purchasing the next house since your purchase will not depend on the sale.

Talk To Your Listing Agent About Fees And Services

The charges and services provided by agents are constantly changing. Therefore, it is crucial to understand exactly what services your agent provides and the amount they will charge. Certain agents exceed their duties to sell a house and have a right to demand a higher rate but others will provide restricted services for a lesser price. Some listing agents may want to offer a significant buyer's agent commission, while others may suggest sellers save money by charging a lower price. Commissions are always negotiated. Experienced and knowledgeable agents are aware of the best approach for their markets in their area.

Buyers Need To Come Prepared

With a small number of homes on the market, buyers need to be prepared to take advantage of the moment a suitable property comes on the market. This includes getting pre-approved with an institution and locking in the mortgage rate as quickly as you can to safeguard yourself against any future rate increases.

Take into consideration the costs that may rise, like costs for insurance as well as property tax. Flood wildfire, storm, or flood coverage can cost hundreds or perhaps thousands of dollars the monthly cost of your home. Make sure to take this into account when you calculate your budget.

Buyers must also be aware of how their agent will be compensated. It's not a given that sellers will offer an agent fee for buyers. Buyers must talk with their agent on how to prepare an offer, and also the agent's compensation, so they're not forced to look for money for their broker once the deal is concluded.

Consider Overlooked Homes

Be wary of houses that have fallen out of escrow and are now up for sale. The fact that a buyer previously was cold doesn't mean that there's something not right with the home. Certain potential buyers will view an unresolved cancellation in the form of a scarlet letter, which indicates there are fewer buyers on these properties.

There's less competition for fixer-uppers from flippers who have been able to demonstrate due to the higher mortgage rates. With fewer flippers, it is possible to acquire a home that requires some attention and add your own personal touch to it.

Don't Delay

Mortgage rates are extremely high at present and will fall in the near future or sooner. But timing the market just right can be difficult, even if it's not difficult. Therefore, don't attempt to predict the market. Buyers who've been wishing for lower rates are now regretting waiting for as long as they've waited: "Some of my clients are so upset they haven't bought within the last three years," said Redfin agent based in Dallas Connie Durnal. "I ask my clients: If you don't buy now and rates go up, will you be upset? If the answer is yes, then I get them out there now to find a house!"

Overall, the summer of 2024's housing market is proving to be a challenge to navigate. But, if you are prepared with flexibility as well as realistic expectations, both buyers and sellers can succeed. The key is to work closely with an expert realtor who understands how to plan in this particular setting.