to buy/sell or not is the question
Should You Buy a Home Now or Wait? Here are some tips for buying and selling in a hot housing market!
Buying a house—in any market—is a highly personal decision. Because homes represent the largest single purchase most people will make in their lifetime, it’s crucial to be in a solid financial position before diving in.
Use a mortgage calculator to find out how much your monthly housing costs will be based on your down payment and interest rate.
Trying to time the market or predict what might happen next year is not the best homebuying strategy.
Instead, it’s better to buy based on your budget and needs. If you find a home you love in an area you love and it also fits your budget, then chances are it might be right for you.
TIPS FOR BUYING IN A HOT HOUSING MARKET
Start with a budget and make a pact with yourself to stick with it. Even with a slight uptick in the number of homes for sale, buyers are still facing steep prices and mortgage rates in the 6% range.
“There are a lot of factors going into buying right now, and frankly, a lot of people are scared to make a mistake,” says Jennifer Baptista, a real estate agent at Fresh Starts Registry in Andover, Massachusetts.
“As a seasoned agent, I ask my clients first and foremost, ‘What does your gut say?’ If the [timing] feels wrong, you will always find the wrong home, so just wait.” She adds.
Rachel Luna, the principal of Patriot Title in Houston, also advises buyers to slow down. The scarcity mentality in the market has driven people to make fast decisions, which can quickly turn into buyer’s remorse.
The problem is you can’t return the house if you realize you overpaid or just bought a place you don’t like. The seller’s costs can run up to 10% of the home’s sale price, so you could end up losing money if you turn around and sell it.
“Be patient,” Luna says. “What really matters when purchasing a house is your personal finances and long-term economic stability.
Ask yourself: Are you debt-free? Do you have an emergency fund for three to six months of expenses? Will your monthly house payment be 25% or less of your monthly take-home pay?
If you don’t comfortably meet these qualifications, it wouldn’t matter if the market is in your favor.
TIPS FOR SELLING IN A HOT HOUSING MARKET
The first step for a successful sale is to find a listing agent who knows the area and comes highly recommended.
A good agent will work closely with you to price your home competitively while fielding questions and offers from prospective buyers.
Meanwhile, present your home in the best possible light.
Not everyone has cash dedicated to renovations and repairs, but a little sweat equity can go a long way. The first step is to declutter, organize and clean.
Tuck away stacks of bills and receipts, store toys and make sure your kitchen is tidy. Bright lighting is also a great way to make your home feel spacious and light.
Even if your home is outdated, a clean space gives buyers a chance to envision the potential of the new home.
Home prices might expand, but the options will, too, according to some economists. As more homeowners look to adjust fit changing personal needs and take advantage of favorable market conditions.
The Realtor.com inventory forecast made a sharp change in course from the beginning of the year to now. Going from just a 0.3% rise in inventory to their current prediction of a 15% jump in the for-sale housing stock.
While housing costs remain high, pushing home shoppers to make tough choices about their budget priorities. The number of homes for sale is expected to continue to grow, according to Realtor.com.
About the writer: Shaura Cuyan writes all the hottest Real Estate trends and predictions for Summit VA Solutions! She has previously written for a number of freelancing gigs both locally and internationally and writes her own blog on lifestyle and current issues. She is a Graduate of Bachelor of Arts in Communication and has a Masters degree in Development Communication.