When you think of real estate, you might not think of much magic in our current real estate market. Right now, some buyers and sellers are tense with rising interest rates and low inventory, but there is magic in every market. I want to spotlight some opportunities that may be overlooked in the midst of the media hype of doom and gloom.
Assumptions. So, let’s address those interest rates. They aren’t as tragic as they could be, but yes, they have risen. Though many of the current homeowners selling their home have a lower interest rate, are you aware that some loans are able to be assumed by a new incoming buyer and KEEP the lower interest rate? Essentially, you can transfer the lower interest rate from seller to buyer. This can be beneficial for both the buyer and seller — for buyers, they obviously get the lower interest rate, but at a time when some sellers are considering price reductions, they might be able to receive a higher sales price if the buyer has a lower interest rate. For more important details on this, reach out to your favorite REALTOR®. The key takeaway is this option could be a helpful way to provide a WIN-WIN scenario for all parties.
Another thing for buyers to consider, while the interest rates have increased, is the many advantages in our current market versus a year ago. Many buyers felt forced to waive their home inspection since there was so much competition. Now that you aren’t competing against 50 other offers, you can keep this vital contingency and have full awareness of the condition of the home. Last year, the winning bid might consist of a buyer paying tens of thousands over list price in addition to covering his or her own closing costs. Sellers are more amenable in our current market to making concessions. Now don’t get crazy; they aren’t giving the house away, but the market is normalizing.
Sellers, don’t fear. Inventory is still low and prices are maintaining, so you might need to be open to concessions, but with the right REALTOR® advocating on your behalf, you are sure to find a winning scenario even as our market shifts. The first step is ensuring the property is priced well to the condition. Another value your REALTOR® can provide is to walk you through these logistics before you list your property.
As the market shifts, it’s important to ensure you are listening to the facts versus the hype. Also remember, real estate is local, and in the case of selling or buying a house, you want to ensure those facts are specific to the house or neighborhood. I promise, there is magic in every real estate market if only you believe!