An Expert Makes All The Difference
You want to sell your house, but you don’t know where to start. It’s an overwhelming prospect, but the good news is that real estate professionals are experts, and have the knowledge and skills to not just sell your house, but take care of you the whole way. Here’s five reasons why you’re going to want to keep a real estate professional in your corner when you sell your house. 1. AN EXPERT KNOWS THE MARKET TRENDS How and when you list your house can affect its price as well as its ability to sell. Your real estate advisor studies national and local trends, and recognizes the ebb and flow of the market. They will have data, guidance, and insight to offer, in order to help you make the best, most informed decisions when it comes to selling your house. 2. AN EXPERT SETS THE RIGHT PRICE The price you ask for isn’t necessarily the price you get, but how do you know what to ask for? If you price it too high, you can deter buyers, and if you price it too low, you could be leaving tens or even hundreds of thousands of dollars on the table. Your real estate advisor will take into account a great number of factors, comparing your house and its condition to similar houses that have sold recently, and determine the best pricing strategy to get you the number that you want for your house. 3. AN EXPERT MAXIMIZES YOUR POOL OF BUYERS Getting the best price for your house means getting the most eyes on your listing. Your real estate advisor will have a huge number of tools at their disposal, including listing services, agency resources, social media, and an active client base of buyers and sellers. Investopedia explains why it’s risky to sell on your own without the resources your advisor will provide: “You don’t have relationships with clients, other agents, or a real estate agency to bring the largest pool of potential buyers to your home.” 4. AN EXPERT UNDERSTANDS THE FINE PRINT The sheer volume of paperwork associated with selling a house alone is worth hiring a real estate professional. Your real estate advisor has dealt with these exact contracts and documents before, knows what they mean, and can help you wade through the legalese and fill them out successfully the first time. More importantly, your advisor will make sure that you are not taken advantage of in some way in the contract, and will help you navigate the tricky waters of disclosures, regulations, and legal documents. The National Association of Realtors (NAR) puts it like this: “There’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.” 5. AN EXPERT NEGOTIATES ON YOUR BEHALF Negotiating a deal isn’t as straightforward as sitting down with the buyer and deciding on a price. Today’s buyer comes to the table with several people in their corner, which means you’re actually dealing with: The buyer, who wants the best deal possible The buyer’s agent, who will use their expertise to advocate for the buyer The inspection company, which works for the buyer and will almost always find concerns with the house The appraiser, who assesses the property’s value to protect the lender Your real estate advisor is an expert at dealing with each of these parties, and will help you manage negotiations in the right way for everyone.BOTTOM LINE There are many reasons to hire a real estate professional to help you sell your house. Don’t go at it alone. If you’re planning to sell your house this spring, let’s connect so you have an expert by your side to guide you in today’s market.
Why It Makes Sense To Buy Before Spring
With winter in full swing, thoughts of warmer days ahead have us thinking about getting ready to move when the weather warms up. Spring brings with it a flurry of buying activity, making it one of the busiest seasons in the housing market. If you're ready to buy a house, waiting until the weather is nice could mean facing stiffer competition. Let's get into why you should move before the market gets busy in the spring. SPRING SHOULD BRING A WAVE OF BUYERS TO THE MARKET As animals hibernate in winter, so too does the market slow when the weather gets cold. Current buyer demand is low not only because the weather is keeping everyone inside, but last year's interest rate hikes have kept buyers on their toes, waiting for the market to stabilize to dip them in. The Bank of Canada just announced its most recent, but final for the time being, interest rate increase. This means that with rates stabilizing, more buyers will be willing to jump back into the market. That means right now is a sweet spot if you’re in a good position to buy, before more buyers reappear. Affordability is beginning to improve, but demand is still low — for now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), shares: “. . . expect sales to pick up again soon since mortgage rates have markedly declined after peaking late last year.” If you’re ready to buy a home, right now is the best time to do so before your competition grows and more buyers enter the market. TODAY’S SELLERS ARE MOTIVATED Whenever buyers face a buyer's market, it's important to remember that sellers have fewer options, and are more motivated to work with you on making the sale happen. This means that you have more negotiating power when it comes to getting what you want. According to a recent article from Forbes: “. . . sellers gave concessions to buyers in 41.9% of home sales in the fourth quarter of last year.” Like all things, this window will not last forever. Indeed, with spring just around the corner, buyers are going to be waking up and looking for the best deals before you know it. The more competition you face from other buyers, the less negotiating power you have, and the less sellers will be willing to work with you to get you the deal you want. Always work with a trusted real estate professional to learn how to get everything you want out of buying a home. BOTTOM LINE If you're ready to buy, and if you're willing to move when it's still a little chilly out, some incredible deals are waiting for you on the market. The spring thaw is near, but smart buyers will work year-round to get their dream home. Working with your team of expert real estate advisors is the best way to learn about the current market and what it means for you. Let’s connect today to determine the best plan to achieve your homebuying goals.
What Past Recessions Tell Us About the Housing Market
The economy is constantly shifting, and even if you're not one to closely follow its every move, you've likely caught wind of the ominous whispers of an impending recession. The causes of economic turmoil are many and varied. Still, by turning to the wisdom of those who have studied the markets for years and examining past patterns, we may catch a glimpse of the turbulent future that awaits us. As Greg McBride, Chief Financial Analyst at Bankrate, says: “Two-in-three economists are forecasting a recession in 2023 . . .” With the spectre of a recession looming on the horizon, it's natural to wonder what impact it might have on the housing market. But history has shown us that there's no need to fear. By examining the data from past recessions, we can see how the real estate market has weathered economic turmoil. This historical perspective can put your mind at ease and give you a better understanding of what to expect in the event of a recession today. A RECESSION DOESN’T MEAN FALLING HOME PRICES To show that home prices don't fall every time there's a recession; it helps to turn to historical data. As the graph below illustrates, looking at recessions going back to 1980, home prices appreciated in four of the last six. So historically, it doesn't mean home values will always fall when the economy slows down. When the topic of a potential recession arises, many people immediately think back to the housing crisis of 2008. It's easy to assume that history will repeat itself and that the housing market is once again on the brink of collapse. However, this is different. The market fundamentals of today are vastly different from those in 2008, and experts predict that a recession is unlikely to have the same devastating effect on the housing market. While home prices may fluctuate in different local markets, experts predict that prices will remain relatively stable nationwide and not fall as they did in 2008. The average of their 2023 forecasts shows that prices will net neutral. This means that a recession will not likely cause a crash in the housing market as it did in 2008. A RECESSION MEANS FALLING MORTGAGE RATES Research also helps paint the picture of how a recession could impact the cost of financing a home. As the graph below shows, historically, mortgage rates decreased each time the economy slowed down. Fortune explains mortgage rates typically fall during an economic slowdown: “Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.” As we move into 2023, market experts predict that mortgage rates will likely stabilize at lower levels than last year. This is because mortgage rates tend to be closely tied to inflation. And early indicators suggest that inflation is beginning to cool off. Should this trend continue, rates may even drop a bit further. However, it's unlikely that we'll see rates as low as 3% again. It's important to remember that there's no need to be fearful regarding the housing market and a potential recession. While a recession may occur, it's likely to be mild, and the housing market will play a vital role in a quick economic rebound. Overall, you can expect a stable market and home prices to be net neutral in the coming years. As the 2022 CEO Outlook from KPMG, says: “Global CEOs see a ‘mild and short’ recession, yet optimistic about global economy over 3-year horizon . . . More than 8 out of 10 anticipate a recession over the next 12 months, with more than half expecting it to be mild and short.” Bottom Line Though past events don't always dictate future outcomes, studying history can still help us gain valuable insights. Looking at historical data, home values have generally appreciated during most recessions, and mortgage rates have dropped. The housing market is a complex and ever-changing landscape, and if you're considering a purchase or sale this year, expert advice is essential. Need help navigating this rough terrain - connect with me to arm yourself with the knowledge you need to make the most of your homeownership goals in these uncertain times.
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