My Answers. My Views.

Mindset for Buyers and Sellers in 2023

It’s a new year, so get a new outlook… actually let’s say “look out”!  Here it comes: “Everything old is new again.” What I mean by that is this ever-changing market is returning to some of its old ways.

The last few years have been pure insanity for buyers.  Overbidding, waiving inspections and appraisals… I’d say that has mellowed and in some instances has ceased all together. 

Real estate is geographically affected. Housing prices have definitely leveled out. Listing agents have true comps to base their pricing on. We are seeing price reductions, just like we did prior to the “Covid era.”

Yes, I said it! “Covid era.” Sellers are offering or agreeing to concessions to help offset interest rate increases and are reducing / adjusting prices. As sellers become buyers, they will hopefully reap some of those same benefits (if needed) when purchasing. Buying power has changed drastically. For example, some buyers may be paying up to $1,000 more monthly with the hike in interest rates from 3% (January 2022) to 7% (October 2022), so their dream home may not be as obtainable this year as it was last year. That is why it’s imperative you work with an experienced agent that understands the art of negotiating in your geographic area, especially if it’s your dream home that is being negotiated!

Condos and townhouses are still slim pickings but are priced according to the market. Single family homes, if priced correctly, are selling, and if not the price is being adjusted and then selling.

Sellers are recognizing their need for direction from “experienced” Realtors. Buyers are looking for agents that know how to ride this roller coaster. I’m in the front seat; I’m a leader in the industry. I’m an experienced real estate agent and have listed and sold through crashing and soaring markets. I’ve lived through it all and have worked through it all. Give me a call at 608-577-5595.

Come read my next blog to find out my answers and my views on underbidding and overbidding and what that means for buyers and sellers!

Investors

Investors for rental properties are still growing their portfolios. They are primarily cash buyers that don’t care about inspections and are not conducting appraisals. The investment usually is long term.

Although investors that flip homes may now have a little bit of competition, they still have a strong presence in the market. Competition meaning that buyers today are willing to pay up, forgo inspections as well, and make the appraisal whole. They (the buyers) plan to live in the home, so paying up or putting elbow grease into a property in a low inventory market isn’t scaring buyers away.

However, overall, yes, it’s still a good time to be an investor. Since rental prices are also inflated it is easier/faster for the investor to recoup the extra dollars spent. It is also easier for the investor to flip a home after the renovation is completed as inventory is still at an all-time low. 

No matter what type of buyer you are, call me. I work with investors, buyers and sellers. 609-577-5595.

What’s next?

My Answers My Views will discuss the “must have” mindset for ALL Sellers and Buyers.

Is it Still a Good Time to Buy or Sell?

My Answers, My Views will address whether or not it’s still a good time to sell or buy and what the new year thus far is looking like.

Yes, it’s a good time to sell – the prices are set and leveled out, keeping things steady.  Although interest rates are creeping up (not alarmingly) the market will stay steady still favoring sellers. It comes back to supply and demand. I do see the days on market taking a bit longer to capture a buyer but I am still seeing multiple offers. 

Buyers seem a bit more cautious when offering their price (not all buyers are willing to waive inspections or guarantee appraisal etc.). They’re taking their chances with more traditional offers. I think each real estate transaction should be looked at as far as history, movement in the area, along with an in depth look at the actives, pending and sold homes within the last 6 months. Then a strategic decision on offering terms and price can be made.

Therefore, buyers should be educated on the area they want to live in. I will educate you. You must stay in front of the market, meaning see what you like as soon as it becomes available.  If now is your time to buy, be ready as there is no time like the present!

To sum it up, 2022 looks like a steady flow of purchases and sales even with a slight increase in mortgage rates. The increase in rates will affect buyers purchasing power but by no means will the increase stop the buying process. If you are ready to move I’ll make every dollar count!  Whether you’re the buyer or seller!

What’s next?

My Answers My Views will discuss what to consider if you are an investor….

What makes your home stand out from the rest?

Making a first impression a lasting one is not only true for meeting people for the first time, it’s also true when introducing your home to a buyer.

Are you impressed when meeting somebody for the first time that looks like they just rolled out of bed wearing wrinkled dirty clothes, teeth not brushed, hair not done? …Certainly not!  However, you would be impressed if that person was wearing a suit or a dress with a nice bright smile on their face.

Same goes for a home. First impressions “should impress”. 

When a seller wants to dress their home to impress, they should be mindful of the front door. It’s like shaking a hand for the first time in an introduction. Would you shake a dirty hand? Of course not! The front door should  be clean and freshly painted if needed. The pathway to the door should be at the very least…neat, swept, weeded. Hang a wreath on the door,  put a welcome sign up, a flower pot out, or display something seasonable!  This captures the buyers attention and makes them eager to see more. The interior of the home should be staged to be shown. Make it look like there is room in the home, organize closets, declutter… if possible, paint if needed.  

I’m an excellent source of advice on how to make your home stand out. There are secrets I’ll share with you which are cost effective. Your bottom line will increase with my tips.

What kind of seller do you want to be? Here is a very simple answer. Be the kind of seller you’d like to buy from.

Present your home the way you’d like to see it if you were the one buying it. Deliver your home in the manner in which you’d like to receive it.

I promise to give you the tips on how to dress your home to impress buyers. Make it stand out! Dress to impress – contact me!

Next time:

My Answers, My Views will address whether or not it’s still a good time to sell or buy and what the new year thus far is looking like.

Guaranteeing and waiving appraisals.

Should buyers guarantee the appraisal? 

What does this mean? 

Guaranteeing the appraisal means flat out …The buyer is GUARANTEEING THE PURCHASE PRICE NO MATTER WHAT THE PROPERTY APPRAISES FOR. For example :  If the contract price is $400,000 and the appraised value is $375,000, then the buyer is bringing $25,000 to closing to make up for the difference in the appraisal amount of $375,000 to the purchase price of $400,000.

You do not have to guarantee it in its entirety. You can “cap off” the amount that you’d like to guarantee.  I’d like to explain this to you or show you in your next purchase contract. 

Do you HAVE to guarantee or waive the appraisal? 

No, you don’t have to do that either. Offers are still being accepted without waiving or guaranteeing the appraisal. However, offers made with either of these terms are viewed as very strong offers.

And, of course sellers are excited to receive offers without an appraisal contingency. One less hurdle for them to jump over. Thus, making it hard to reject an offer with either of these terms.

Waiving an appraisal can be done by the bank or by the buyer. 

If the bank waives the appraisal it means an appraisal  is not necessary- most likely they are satisfied by the “comps” provided by the appraiser (note: not  the real estate agent) and therefore a physical appraisal  is not necessary.

If a buyer waives the appraisal, with or without certain terms, it means the purchase price is secured by the buyer. They must have sufficient funds in addition to their closing costs and must be able to provide proof of these additional funds to the seller.

“Guaranteeing” the appraisal can only be done by the buyer as it’s a agreement to bring in money over the appraised value if the home under appraises.

When a buyer is guaranteeing or waiving an appraisal it could offset necessary funds needed to close. Therefore,  I always advise my buyers to consult with their lender to confirm that they are financially sound/equipped to do this. 

What is the seller thinking in the present market compared to the first half of 2021?

Sellers are thinking more steadily now than in the first half of the year.  Sellers are considering whether or not there are  “comps” to back up pricing. Prices have flattened out and we have enough comparable properties to stop the guessing game about appraisals and values. However, it is still a sellers market as inventory is low.

I put a true detailed analysis together for my sellers. I consider their needs, their desired time frame, where their next home is going to be and how I will get them into that home. I consider the market trend, the time of year, the expected traffic flow through their homes. I group all of that together with my knowledge and intelligent views drawn from my experience, and come up with a selling price to bring in viable, STRONG offers.

What makes your home stand out from the rest? What kind of seller do you want to be?

I’ll discuss these questions next!

Sellers are thinking more steadily now than in the first half of the year.  Sellers are considering whether or not there are  “comps” to back up pricing. Prices have flattened out and we have enough comparable properties to stop the guessing game about appraisals and values. However, it is still a sellers market as inventory is low.

I put a true detailed analysis together for my sellers. I consider their needs, their desired time frame, where their next home is going to be and how I will get them into that home. I consider the market trend, the time of year, the expected traffic flow through their homes. I group all of that together with my knowledge and intelligent views drawn from my experience, and come up with a selling price to bring in viable, STRONG offers.

What makes your home stand out from the rest? What kind of seller do you want to be?

I’ll discuss these questions next!

Do you have to waive inspections?

The answer to this question is not so complex to me, as your realtor, but for a buyer it is somewhat confusing.  

While other agents may advise their buyers to waive inspections – I don’t. Waiving inspections can mean one of two things.   

1. You’re not conducting inspections at all (which I am highly against)  

 OR

 2. You’ll have an inspection done but you will not ask for anything.

Note:  This doesn’t mean you have to proceed with the sale if something major is discovered.  There are legalities to consider and under the advice of your attorney, and my guidance, a solution can be figured out even if that means the dreaded “cancellation”.

I will never advise you “not to have an inspection “- it is your right to have one.

It is your right to know what you are buying.

It is also your right, as a buyer, to make an educated decision on whether or not you want to proceed. 

I have a clause I put in all of my offers which sellers appreciate and buyers agree with.
If you’d like to know what that clause is, reach out to me….

The next hot topic to be discussed is “Appraisals”. 

Should you guarantee the appraisal? What does this mean? 

Do you have to waive the appraisal? 

What is the seller thinking in the present market compared to the first half of 2021?