THE STRESSES OF THE SPRING SELLING SEASON!
When most people think of spring, they think of chirping birds, blooming flowers, spring break and warmer days. In real estate however, we think of bidding wars, tough negotiations and making sure our clients are well represented in the purchase, and/or sale, of their most important financial asset.
This spring is no different. The National Association of Realtors reports that pending home sales have maintained their momentum by increasing for the second consecutive month and have reached their highest level in nearly a year. It’s a solid start to the spring selling season which is expected to continue to climb upwards.
Rising rents across most of the country are fueling buyer demand. In a recent Gallup survey renters are more worried about housing costs than homeowners at all income levels. When one purchases a property, they know that their costs will stay relatively stable and increase slightly overtime due to insurance and property tax adjustments. Renters, on the other-hand, face many market variables and drastic rate increases over a shorter period of time when compared to homeowners. Low mortgage rates, which are easing affordability crunches in some parts of the country, and a healthy labor market, are also enticing buyers to act right now.
While demand is up, inventory remains stagnant, which only serve to drive-up prices, and strain the patience of homebuyers everywhere. There are several steps a buyer can take to ease the stress that naturally comes this time of year.
1). Know your financial status and credit limitations. They will affect the terms of a mortgage, the interest rate you will pay and the types of mortgages you can qualify for.
2). Get pre-approved for a loan. Being pre-approved gives you bargaining power that you’ll need in this highly competitive environment. Plus, you’ll know how much house you can afford before shopping.
3). Have your list of must-haves in order. If you must have a walk-out basement, then walk away from that gorgeous 2 bedroom condo, even though it seems like a great deal. Think long-term as well. Are you planning to have a family in the next two years? Then you need to consider school location as well.
4). Use a real estate agent. Your real estate agent is key to your success. Your agent can provide you with market status reports, similar to the ones here, that provide inventory in the area, median price and more. Your real estate agent will know how to use that information to your advantage, help you negotiate, keep you informed, and walk you through the entire purchasing process.
It’s a stressful market out there, but it doesn’t have to be. Align yourself with Coldwell Banker Residential Brokerage and let us lead you through the process and minimize the stress for you.