For many people 2019 holds uncertainty when it comes to their housing situation. For the past three to four years the steady increases in the real estate market have been virtually unmatched in our history. But that is starting to change.
A recent article I read asked top economists what they foresaw in the coming year of 2019 and the answers should cause both sellers and buyers to consider all their options when selling or buying.
The thrust of the concern centers around the steadily rising interest rates. Here is what one economist said, “The era of high homebuyer affordability and dirt-cheap mortgage rates is probably over.” And this will effect both sellers and buyers.
On the selling side, those with median priced homes or above median, the window will narrow for potential buyers. That means more days on market – which costs sellers big dollars as the house sits – and the sales price could be negotiated far lower than the asking price.
For buyers, the higher interest rates are going to force them to consider lower priced homes in areas they may not have considered before the rate hikes. Unfortunately, the condition of some lower median priced homes will also cause issues when there are home inspections and bank appraisals leading to buyers needing to withdrawal their contract – a friend of mine has had this happen to him three times now.
If you are buying a home make sure you take the time to get with a qualified mortgage company and get your pre-approval in place. This will get you in the best position possible to know what you can afford and you’ll to be ready when you find what you’re looking for.
If you’re selling you need to broaden your understanding of the tools available to you. Traditionally a listing on the MLS by a realtor has been the best route to get a sale but that is changing with sites like Zillow, FSBO, and even online classifieds like Facebook Marketplace or Craigslist.
The MLS will certainly get the most “retail” buyers but it will also cost the most since you’re going to be paying a minimum of 10%-15% of the sales price in commissions and fees to get it closed. Not to mention the fact many buyers will require inspections and appraisals that can further erode your net proceeds.
As for all the other methods of sale they share several things in common; 1) They take a lot of time as you are acting as the agent to sell your home. That means you’re doing the marketing, you’re taking the calls, you’re answering the questions, and you’re showing the house. 2) You’ll need to have a basic understanding of real estate transactions. Including contracts, negotiations, deciphering inspection reports, and dealing with the title agency. 3) This can be the slowest way to sell your home. Since these sites are all very different they are inherently fragmented. This leads consumers to often times abandon these alternative sites and retreat to the MLS where everything is uniform and concise.
Now as a seller there is one other tool you should consider placing in your toolbox if you need to sell your house fast. And that is selling direct to an investor like Journey Properties. We approach things MUCH differently and by doing so we place you in control of the sale. How do we do this?
We look at your situation and propose solutions that will work for you. Sometimes that means a fast cash sale where we can close within 14 days. Other times we have worked with sellers to provide them with creative deal structures to net more than their asking price. Regardless, you are in the driver’s seat when we present your options so you get the best result.
Please let us know how we can help you with the sale of your home.
All the best and God Bless.