The low mortgage rates and skyrocketing home prices we saw in 2021 haven’t gone anywhere in the first quarter of 2022. As new buyers and sellers hit the market this spring, real estate trends dictate that the drastic increase in home values and competitive bidding wars we’ve seen in recent years will level off in 2022. There is a demand for homeownership, but not much inventory on the market. It’s more important than ever to prepare for competition.
Sellers in the Real Estate Market
Find the Right Agent
Finding a realtor who knows the local market is essential when listing your property for sale. A local agent with a proven sales record can help you with everything from paperwork and listings to hiring professional photographers.
Don’t Wait for Rates to Rise
Rates on a 30-year fixed-rate mortgage will be hitting 5% in the coming months. That’s the highest they’ve been since 2011! If you wait to sell or try to keep your property on the market for too long, potential buyers may no longer be able to afford to purchase your home. Worse, spending too much time on the market means your property will most likely end up selling for less than your asking price.
Be Prepared to Sell Quickly
During the spring, it’s not uncommon for sales to be completed in a week, or even a day. By preparing for your own move in advance, you’ll be ready for a quick close. Start by packing things you won’t need on a daily basis and storing them if you can.
Removing your personal items like family photos may make your home feel strange for a while. However, this can help potential buyers better visualize themselves and their belongings in the space.
Repair, Don’t Update
Spending $10,000 to upgrade the kitchen appliances may sound like a great idea, but rarely will you get your full investment back. Focus on what needs to be fixed like drafty windows or leaky faucets. Having a pre-inspection completed on your home can help you determine what repairs to prioritize now to move forward with a quick sale.
Buyers in the Real Estate Market
Find the Right Agent
The first step to purchasing your dream home is finding the right local realtor. An experienced realtor can negotiate on your behalf, and they have the personal touch to find just what you’re looking for within your budget.
The homes you see on TV and in magazines are gorgeous, but make sure you know what you can afford. Start looking for homes that work with your finances.
Assess Your Finances
Review everything: your income, your credit score, and your debts. Ensure that your finances are ready for homeownership and that you are prepared for a down payment and closing costs.
Getting pre-approved for your mortgage before going home shopping is different from being pre-qualified. Pre-approval means that the lender has agreed in writing to back your loan, while pre-qualified only means that you have met certain qualifications.
Whether you’re buying or selling in the Gulf Shores this year, our local expertise and thorough attention to detail will always make sure you get the best deal. Contact the Kris Powell to get started today.