Only the right time for you! By Jennifer Hawkins, key2see Team
“Am I crazy to enter today’s real estate market?” Do you feel like you are hearing a different answer to that question from everyone? You are. Media, economists, REALTORS, lenders, and then of course neighbors, friends, and the list goes on.
Do you know why you will continue to hear different answers to that broad question? Because real estate is situational. There are, however, a few situations that I think make this a great time to list your home, as well as there are a few situations I think make this a great time to buy—and I am here to break that down and help be your guide.
BOOMERS! Hey you, Baby Boomers (a Baby Boomer was born between 1946 and 1964):
1. Are you still sitting on a ton of equity in your house, but you don’t necessarily need all that space?
2. Have you been waiting to cash in, but you felt like you didn’t have anywhere to go? This is your chance. You are the largest demographic that owns your home outright or has very little debt, and you are also the only demographic that will be downsizing and spending less on your next home than the home you are currently in. This equates to two wins for you in this market:
1. The rates mean very little to you or nothing at all.
2. You may be able to negotiate your desired smaller footprint with less competition in the buying pool.
The millennials are a larger demographic than you Boomers, and they are about to start growing their families and need more bedrooms, yard space, bonus rooms, dining rooms … and guess who has all of that? The Boomers!
Let me start this off by saying, we understand interest rates doubling in a year is not a good look. It is difficult to imagine “what you could have had,” but there are a few situations that might make this the best time to buy.
FIRST-TIME HOME BUYERS … I am talking to you! Have you heard of:
1. A 2-1 buydown?
2. Seller-paid inspection repairs?
3. Seller-paid closing costs?
You are the luckiest first-time home buyers in five years. This is the only time, in a long time, that you can negotiate with the seller!
A 2-1 buydown is the seller paying to buy down your interest rate! Yes, I am serious. With others getting out of the market because of fear, this has opened up an opportunity for you to capitalize.
As a first-time home buyer, you likely won’t have an abundance of cash to fix neglected maintenance items found during your inspection (the inspection you would have likely had to waive six months ago). Now’s your chance to have the seller fix them for you!
Also keep more money in your pocket by asking the sellers to pitch in on closing costs.
My advice: Link up with industry leaders, a good lender and good REALTOR team, and talk about options. I strongly believe a REALTOR should not be someone you hire a week or two before you are ready to enter the market; your REALTOR needs to be in your corner at all times directing and guiding you during an ever-changing market.
So, remember, real estate is situational. It will never be the perfect time for everyone.
The question is, is today the right time for you?