Tips For Homebuyers And Sellers For Spring 2024

This spring, the housing market is in an odd place. Although it is improving, there is still a historically low number of homes available, and many potential buyers have been driven out of the market by high mortgage rates. The high prices have also encouraged many current homeowners to remain in their current homes, which has limited the supply of available properties. For both buyers and sellers, these anomalies in the housing market offer special opportunities and challenges.

Pricing Is Key For Sellers

The most important thing for a seller to get right is the listing price. When a home is first listed, it typically receives a lot more online attention and views than when the seller subsequently lowers the price. This implies that attempting to pique interest by setting a price that is initially purposefully high and then lowering it later is likely to fail. Since fewer people are looking to buy a home, it’s imperative to set your price correctly from the outset to attract buyers. This tactic can produce several bids, resulting in the best deal.

Cost And Risk Can Be Reduced By Selling Before Buying

Choosing to buy or sell first is another factor that sellers need to think about. With high rates, it might be more prudent to sell first, move into a short-term rental, and then, once you know exactly how much you can afford from the sale proceeds, buy your next home. Making an offer on a new house before you know how much you can afford, or being forced to pay exorbitant interest on a bridge loan, are two dangerous scenarios that this avoids. Because your purchase will not be reliant on a sale, it may also help you position yourself to be competitive when purchasing your next home.

Discuss Fees and Services With Your Listing Agent

The costs and services that agents provide are constantly changing, so it’s critical to understand exactly what your agent is providing and what it will cost. While some agents offer more limited services at a lower cost, others will go above and beyond to sell a home and should, therefore, be paid more. While some listing agents will advise the seller to save money by accepting a smaller fee, others will want to offer a substantial buyer’s agent fee. There has always been wiggle room on commissions. An astute and skilled agent will know the ideal approach for their particular local market.

Buyers Must Arrive Prepared

Due to the limited quantity of available properties, purchasers need to be prepared to act quickly when the ideal property comes up for sale. To protect against future rate increases, it is necessary to lock in a mortgage rate as soon as possible and get pre-approved with a lender.

Think about expenses that could go up, like property taxes and insurance. When creating your budget, don’t forget to account for the hundreds or even thousands of dollars that flood, storm, and wildfire insurance can add to your monthly expenses.

Additionally, buyers must inform themselves about the commission that their agent will receive. The seller’s agreement to pay a buyer’s agent fee is no longer guaranteed. To avoid being in a bind when the deal closes, buyers should consult with their agent regarding the best way to structure an offer as well as the agent’s fee.

Think About Overlooked Houses

Re-listed homes that fell out of escrow should not be disregarded. There’s no indication that there’s a problem with the house just because the previous buyer changed their mind. Cancellation may be interpreted by some as a red flag, indicating that there will be fewer bidders for those houses.

Due to high mortgage rates, there is also less competition than in the past from home flippers for fixer-upper properties. You might be able to find a property that needs some work and add your own touch now that there are fewer flippers in the mix.

Don’t Delay

Right now, mortgage rates are exceptionally high, but they will eventually decline. However, it’s difficult, if not impossible, to time the market precisely, so don’t try.

Overall, the spring housing market of 2024 is going to be difficult to navigate. However, both buyers and sellers can succeed if they are well-prepared, adaptable, and have reasonable expectations. Collaborating closely with an experienced real estate agent who understands how to plan in this particular setting is essential.