MARKET UPDATE: Are we in a buyers' market?
Looking for clues that it's a buyers market? You're not alone. It’s been a wild ride these last few years in real estate. Realtors have shifted from writing/receiving offers that are 6 figures over the asking price to now seeing triple the inventory available and homes sitting for an extended time on the market. While buyers have been at a disadvantage in the past, the tide is shifting and buyers are certainly in the drivers seat for the moment.
Do you know someone who may be interested in buying in the area this spring? Below is a checklist of how to be best prepared and ready to act when the perfect home comes available:
Mortgage Pre-Approval. A pre-approval letter from your selected lender is a must to ensure an offer is looked at and considered by the seller. This not only shows that you are well qualified but that you are prepared to move forward with the closing process as quickly as possible.
Find a trusted Realtor partner. This will be a key step to help guide you along in your search. This partner can bring relevant properties to you to review, schedule property tours, hit up open houses as well as be your mentor in the entire process.
Clean up credit scores. Making sure your credit rating is as clean as possible will be essential. Your credit score will drastically affect the interest rate you qualify for as well as the type of loan you can move forward with. Contact the 3 bureaus – Experian, Equifax and Transunion – to remove any items that may be showing up errantly on your report.
Don’t over think interest rates. Yes, interest rates are higher and are projected to either hold or slightly rise in 2023. But, the rise in rates is a determining factor as to why there is more inventory to choose from at this time. Act now while you can – your lender partner will be ready to help you refinance when rates shift.
Take advantage of concessions. Buyers now have the opportunity to ask the sellers for help in the buying process, also known as concessions. This can be in the form of closing cost assistance, buying down a rate or covering costs such as title insurance or a new survey.
There are many factors to consider in the buying process – this list should be a good starting point. Happy buying out there this spring!