Home shoppers are currently facing some of the most challenging housing market conditions in generations, including lower inventory, higher mortgage interest rates, and heftier prices. In a hot real estate market, home inventory is usually low, competition is high and you may feel like you’re on an emotional rollercoaster. Although there are grounds for optimism that a more balanced housing market will emerge over the course of 2022, it’s important to understand the best ways to approach the housing market. Whether you plan to buy a new home and take advantage of the low rates, or sell and take advantage of the skyrocketing home price appreciation, here are tips on navigating the 2022 housing market.
Tips for Buyers
Here are some tips for buyers to navigate the 2022 housing market:
1. Get- Pre-Approved and Know What you Can Afford
It’s important to get pre-approved with a trusted lender regardless of the market conditions. This helps you to avoid getting your hopes up for a home that you may not be able to afford. Additionally, a pre-approval letter will give you leverage when making an offer. However, for the low-interest rates, experts predict that they are likely to increase slightly this year. Even though a substantial increase is not expected, it’s important to properly know your finances.
2. Establish What’s Most Important for You in a Home
Besides pre-approval establishing you as a serious buyer, it also gives you a clear sense of the kind of home you can afford so you can effectively negotiate with self-assurance. When you already know your budget, you can easily determine your housing priorities. You can as well determine the areas you’re willing to compromise. For instance, you may decide that it’s not necessary to be in a top-tier school district or a four-bedroom.
3. Get Creative with Your Real Estate Strategy
It is important to take advantage of the current prices before they get higher in the coming months. This means you can buy two or three family unit properties, where you can live in one and rent out the others. You can as well consider buying in partnership with a friend.
Tips for Sellers
Here are effective and efficient tips that sellers should consider during the 2022 housing market:
1. Price Your Home Competitively
Before buying a home, most buyers have a budget on what they can afford to spend on prospective properties. This can be out of pocket or based on a pre-approved loan, but regardless of their payment methods, it’s important to price your home properly. If you price your home too high, they may not even consider viewing it, much less buying it. Also, it’s very important to match your price to the value of your home while still making a return on investment. Remember that potential buyers want to feel like they got a good deal when buying a property.
2. Know Your Buyer and Appeal to Them
If you’re selling your home at this time of the year, you want to ensure that it is well maintained and designed. The homes that sit on the market for a long time are usually not consistently updated and are often not priced to take that into account. For instance, if there are low-quality curtains everywhere, young buyers may not look beyond that. If your property gets a fresh coat of paint and undergoes some minor tweaks, perhaps a little modern staging too, it can easily get the price you’re requesting.
3. Decide on the Minimum Acceptable Price
It is important to not allow greed to get the best of you. Some buyers set the price either too high or too low sometimes. When your home’s price is set too high, you may have to go through painful rounds of list price reductions. The best thing you can do is to decide on the minimum price acceptable. If your set price is close to your minimum acceptable price, you’re in a good position to sell.
Regardless of when you decide the time is right for you to buy or sell, it is most important that you’re working with a competent agent that you can trust and who has your best interest in mind.
At Center Street Lending, we offer smarter loans for residential investors. If you’re looking to sell or buy your home, contact us to learn more and access affordable loans today or apply now and get started.