In such an unusual year, many of you are still trying to figure out if now is the right time to make a move.
I’d like to share with you a couple of the sentiments that I’ve been hearing amongst my agent network and clients for buyers who are sitting on the sidelines or sellers who are waiting to list.
To my potential sellers,
1. Buying in a hot market means you can sell in a hot market. If you buy now, you might buy a bit higher, but you can also sell your current home in the same hot market and net more money to offset your new purchase. This is especially true if you are downsizing, or relocating / retiring to a lower cost market.
2. Active buyers are more serious than ever before. People have spent the last 5 months realizing the inadequacies of their home. The buyers who are looking right now, in the middle of Covid-19, are very motivated to get a transaction done and take advantage of the historically low mortgage rates.
3. Price so that the market chases you up, not down. If you don’t price correctly, chances are buyers will not bid — and they may not even view.
4. We don’t know what the future holds. Don’t take this buyer demand for granted. This unprecedented year is far from over — the election and ongoing pandemic could freeze real estate activity again, making it harder to sell afterward. And if your home may require some home improvement services to shine, it’s time to take advantage of this moment when we know that contractors are still allowed inside the home. Remember, in 2006 very few people were predicting a severe housing correction. Changes can happen quickly. A significant economic recession, change in tax code, or other unforeseen event could shift the advantage from sellers to buyers.
To my buyers-in-wait,
1. It is likely prices will go up because of inflation. After an unprecedented government stimulus, expect inflation sooner or later. Investing in real estate is a great hedge against that.
2. Interest rates are at historic lows — but don’t take that for granted. Requirements and rates will worsen at some point. Even if prices come down, if rates go up, your total cost of ownership may be higher for a lower cost home.
3. There’s real value in comfort and security right now. What matters more to you: trying to time the market, or finding the right home that’ll make you and your family feel comfortable and safe during this time?
4. Try to avoid the “wait and see” mentality. Nobody buys at the bottom — and knows it. Focus on quality as your priority: the best deal on the best match that meets your needs for years to come.
As always, if you'd like a more tailored look at how the market is playing out in your neighborhood, just let me know. All the best,