Prepping for success in this dynamic real estate landscape
By Nedra Kanavel, Associate Broker, Idaho and Montana, Tomlinson Sotheby’s International Realty
If anything is true about real estate in the last two years, it’s unpredictability. As we venture into 2024, uncertainty continues to linger, creating both challenges and opportunities. If you’re dreaming of your first home or wishing you could downsize and be closer to the grandkids, the good news is, you can take steps toward that dream now. Instead of scrolling through Zillow and wondering or worrying, there’s much you can do to operate as a healthy buyer or seller in today’s market and accomplish your dreams.
Here are some practical recommendations for both buyers and sellers to navigate the 2024 market.
For Buyers:
Empower Your Search: Get Pre-Approved Before House Hunting.
I fell into the trap of online mortgage calculators myself when I was a younger home buyer and before my real estate career. They almost always do not give you an accurate picture of what you can afford. Set the stage for a successful home-buying journey and get connected with a stellar loan officer. A great lender will get creative with you and help you find the best program to get you the biggest bang for your buck. Obtaining a pre-approval also ensures a realistic understanding of your budget and avoids the disappointment of falling in love with a property that may be financially out of reach.
Seize the Opportunity: Lock your rate promptly.
In a market with many ups and downs in interest rates, buyers should heed the advice of savvy lenders to lock in their rates promptly. Your lender, if he is worth his salt, will be watching the news for you and will know when a rate hike is coming. Listen closely when he or she tells you it’s time to LOCK!
Negotiate Strategically: Ask for concessions.
The rate you see at first may not be the rate you have to live with when it comes to your mortgage. Many sellers are agreeing to contribute to a rate buydown. This strategic move may yield significant savings over the life of the mortgage.
Explore Alternative Financing.
Consider unconventional financing options, such as borrowing from family or exploring owner-carry arrangements. These alternatives may offer better interest rates, providing additional financial flexibility for buyers.
For Sellers:
Knowledge is Power: Work with a Realtor using recent comparable sales.
Collaborating with a knowledgeable real estate agent who provides recent and relevant comparable sales data is crucial for setting an accurate listing price. If your potential listing agent shows up without doing their homework, keep looking. They should walk in your door knowing exactly which nearby properties have sold and for how much.
Reality Check: Look at sold prices, not what your neighbor is trying to sell for.
When thinking about your property value, focus on actual sale prices rather than relying solely on the listing prices you see online. Average Days on Market has grown in the last two years. Chances are, if a home has sat on the market more than 180 days, it’s overpriced and not a good comparable for you and your home sale.
First Impressions Matter: Prepare listings carefully.
The first online showing can make or break a potential sale. Sellers should take care to prepare their home or land to make the best possible first impression online. Ask your agent for recommendations on what to do to be ready. A few days of decluttering, a visit from your favorite house cleaner, and perhaps even an afternoon with a handyman can make a big difference. The most thoughtfully prepared listings, when priced well, are still selling quickly.
Stay Grounded: Caution against relying solely on predictions.
In a market marked by recent volatility, I wouldn’t rely solely on the predictions of others. The past two years have demonstrated that accurately forecasting market trends is challenging. Some of the smartest, most trusted experts have gotten it wrong at some point or another in the last two years.
As we navigate the uncertainties of the real estate market in 2024, these recommendations can serve as a guide for both buyers and sellers. Whether you're looking to secure your dream home or successfully sell a property, staying informed, being strategic, and remaining adaptable are key principles for success in this dynamic real estate landscape.
Comments