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Opportunities for Buyers and Sellers

The real estate industry has been enjoying a golden age of high demand fueled by the lowest interest rates in recent history. However, things changed this year due to increased inflation and competitive bidding that has made home ownership less affordable for nearly everyone.

If you follow the news closely, it’s easy to get caught up in the cloudy forecast of the housing market; however, there are still many opportunities out there if you know where and how to look! 

Here are just a few options to consider.

1. Locking in a rate before it goes up? It’s possible! The recent hikes by the Fed (Federal Reserve) were actually already priced into markets, but recently we’ve seen pockets of volatility where mortgage rates can actually drop down suddenly – making now a great time for buyers looking for their next home (with less competition).

2. Adjustable-Rate Mortgages (ARMs). ARMs are incredibly popular in rising rate environments and can help a home buyer qualify for a higher priced house with lower interest rates that increase over time, instead of paying the higher payment of a fixed rate mortgage. 

3. Paying points is often better than a price reduction and offers larger cost savings to buyers. Paying an upfront fee in return for lower interest rates can be done by either party, but it is most popular when used as an incentive from sellers that want their home sold faster because they’re ready to buy another house or want their sale proceeds quickly.

4. Renovation loans are perfect for sellers who want to move their property quickly and have an outdated home. With renovation loans, you can get your property ready for sale in a short amount of time. These are perfect if the home is not exactly what it needs to be but still has potential and could turn into something amazing with just some minor changes! Renovation loans can be in the form of a home equity line of credit or can be used when buyers are purchasing a home and want to make improvements to it right away. 

There’s no doubt that the real estate market is tough right now, but there’s plenty of opportunity if you look for it for both buyers and sellers. Don’t let today’s negative news cycle get you down. 

Our message to anyone looking to purchase a home is that there are still homes available, with more inventory available almost daily, and more incentives than we’ve seen in years. We’d love to take some time to get to know your needs, create a plan and search until we find the one!

And to sellers, you have not missed the opportunity to cash in on the equity you’ve gained over the past couple of years. It just might take a couple of months to find the right buyer, instead of a couple of hours, and you’re more likely to have offers requesting closing cost contributions from the buyer. Remember, it’s a price war and a beauty contest in today’s market, and we have to win them both!

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