Ways to Persevere in a Shifting Real Estate Market
Buying and selling homes in a shifting market can seem confusing. The real estate market can be challenging at any time, but so much has changed in the last few years that many people are overwhelmed by these changes. If you want to buy or sell in this market, the biggest tool you need is perseverance. Pick a course of action and stick with it until you find success.
How is the Market Shifting?
There are many different ways that the real estate market is changing. One major shift is that in the past, people have bought homes to live in, to use as personal vacation homes, to flip, or even entered the traditional rental market as landlords. Although this is all still true, now there is another reason people are participating in real estate investing: short term vacation rentals such as Airbnb and Vrbo. People can now buy real estate in great neighborhoods and make more money renting homes for a week or a weekend than by counting on traditional renters.
Another major unknown is where the real estate market is headed. For the last two years, the market was hot for sellers, with homes selling at higher prices and in record time. Recently, though, we’ve seen this seller’s market begin to shift. We are seeing homes sit longer and sell for less than they would have a year ago. This is due to increased interest rates and higher inventory for buyers.
Of course, these are not the only changes. Some other changes that have happened or will happen soon include:
Virtual open houses versus traditional in-person open houses
Customers utilizing the newest technology to find their dream home
National and International websites listing and helping to sell local real estate
Fractional property investment
People shopping for technically enhanced home features (smart homes, existing connectivity, etc.)
Buying in a Shifting Market
When buying a home, whether this is your first home or not, you should be as prepared as possible. This is especially true when you are buying in a seller's market or a shifting market. If you are buying in a competitive market or just a competitive area, the key to success is being more prepared than other buyers.
Start by having your finances prepared. If you are taking out a mortgage, do not start looking for your home until you are preapproved. Get your finances in order, get preapproved and understand how much your budget is. Then figure out how much you will need for your down payment and prepare those funds.
Once your finances are ready, do not make any life changes or changes that can affect your finances. This means do not get married, get divorced, get a new job, quit your job, take out a loan, go on a spending spree with your credit card or open any new lines of credit. These things can affect your credit score, changing your preapproval status.
You should also find the best real estate agent possible. An excellent real estate agent can give you an edge over other competitive buyers. A good agent will also have connections in the community, understand the neighborhoods you want to move into, and be a great negotiator.
You should also consider opening your search to all areas you would be willing to live in and not fall in love with just one house, if possible. Finally, look for other ways to win over a homeowner besides the price (although raising the price can help). For instance, paying in cash (for most, this is not feasible) or having a quicker closing could give a buyer an edge.
Selling in a Shifting Market
We are still currently in a seller's market, but market indicators show that this is changing. Sellers should be prepared to have their home stand out above the rest if they want to sell quickly and as close to (or above) their asking price.
If you want to sell, you should think like a buyer. Make the house as presentable as possible. This starts with a deep cleaning of the home. This will include dusting, decluttering, washing the windows and the walls, and spot cleaning or shampooing the carpets.
You should also do whatever possible to increase curb appeal and light up your home. If you prefer low-lighting, now would be a time to purchase more lamps or open the curtains to let in natural light. Lit-up rooms, especially ones with natural light, appear warm and inviting.
You will also want to repair anything that needs to be fixed throughout the living space and outside. Consider upgrades as well. The main selling points of most homes are the master bedroom and the kitchen. If your kitchen needs new appliances, look into a more modern look and feel or appliances that utilize the more recent technology. Sometimes spending a couple thousand can result in a much larger selling price. Small changes could make a difference as well. For instance, replacing the sink and bathroom faucets could spruce up the entire room.
You will also want to take professional photographs. Although your home must show well in person, remember that most people will start looking at listings online. Look at other listings in your price range and area and see what they are doing right and what you could do better.
Lastly, work with a knowledgeable real estate agent. A good agent can be the difference between one or two buyers or a bidding war. An experienced, professional agent will know what is hot right now, how to price the home appropriately, and how to dress the house for the most significant effect.
The real estate market is a live investment model. It is constantly shifting and changing, just as our lives do the same. For some people, this can make buying and selling real estate seem challenging. But a person can do many different things in either situation to set themselves up for success. Being prepared and knowing how to persevere is crucial to succeed in this market.
Let Working Moms Realty be there for you. We know how to persevere in this, and any market!