3 truths about the earlier hot market that aren’t necessarily true anymore
If you’re a potential homebuyer – or seller – you know a lot has changed during the last few months. Interest rates and inflation continue to challenge everyone in real estate, but homes are still being listed and bought during the fall season.
While a good REALTOR® and loan officer have probably alerted you to what has changed – and what hasn’t – recently, our team wants to highlight this article from Realtor.com last month. It breaks down several common scenarios when rates were low and explains how things have changed going into 2023.
Here are three outdated myths from the summer:
“Be prepared to offer above the asking price.” This is no longer the norm in many markets across the country. Sure, some properties will still attract multiple offers, but the all-out bidding wars have subsided. In fact, price cuts are becoming more common – and some listings will have their price reduced more than once as they sit on the market longer than they would have last spring.
“Once you’re pre-approved for a mortgage, you’ll know what you can afford.” We still advise you to talk to a loan officer as early as possible in the home search process. A trusted professional can help you set expectations and alert you to possible incentives you may qualify for. However, because of the rising rates, what you can afford could change from week to week.
“It may be necessary to skip inspections or waive contingencies.” Don’t feel like you should make either one of these moves in today’s market. One expert interviewed in the story said that since we’re back under normal circumstances, “we would rarely advise any buyer to waive home inspections because there is too much risk involved.” One of her buyers had to do just that to get a 100-year-old cottage during the pandemic. On a related note, don’t be afraid to ask the seller for concessions like repairs or help with closing costs.
When market conditions change as quickly as they have lately, it’s important to have the right professionals on your side. As this piece shows, you need partners who are up-to-date and ready to be flexible, no matter what. Our teams would love to be your title and closing provider whenever you or your clients are prepared to buy this – or next – year. Reach out to us anytime.