This seems like a good time for some brutal honesty – tough love, as it were.
Dear Seller:
– You’re not going to get as much for your home as you would have 8 months ago. Before you start dropping that lower lip, take a look at what the price would have been 3 years ago. The stats say you’ll get 21% more money than you would have in 2019. That’s a great return. Price your property to reflect where we are right now, and it should sell in about a month.
– This is no longer the kind of market where you can throw a sign up and expect multiple offers in 3 days. If you want to maximize your return, put some time, effort, and possibly a little money into getting your home ready to sell. Declutter. Seriously, declutter, then do it again 4 more times. Get the house cleaner than it’s ever been and keep it that way. It might be helpful to do some painting, if that’s possible. I warn my sellers in advance that selling your home isn’t fun. However, it’s worth the pain. You’ll get a great return on the work you do to get it ready.
Dear Buyer:
– Stop focusing solely on the interest rate. Yes, it’s important, but plenty of mortgage lenders will try to entice you with a low rate, then require you to pay up front for that rate (called “points”), or your origination fees will be much higher. Some buyers get so excited about buying their rate down, they don’t realize how long they’ll need to stay in that house without refinancing in order to save enough in monthly payments to cover paying for that rate up front. Look at the complete picture and do the math.
– Yes, mortgage rates are much higher than they were last year, but you’re in a better buying environment right now. You have more homes to choose from. You’re competing with fewer buyers. You might be able to see a home twice before you submit an offer. (Gasp!) Offers don’t need to start at asking price to be considered. Sellers are willing to negotiate again: on purchase price, concessions towards closing costs, and inspection items. All of that means more money in your pocket, which could help offset the higher rates.
– Don’t try to time the market. Nobody can predict the future, but the people who know this stuff don’t see any indications that mortgage rates will drop soon. Inventory is still way too low to expect home prices to fall dramatically. Talk with a lender, take a look at your budget, and decide whether or not now is a good time to buy for you based upon facts.
If there’s anything here you disagree with, don’t understand, or want to discuss, send me an email. I love talking about this stuff.
