You know what is driving me nuts? All the chatter that "now is the right time to buy/sell".
We are coming out of one of the strongest seller’s markets IN HISTORY. Let us repeat that again, IN HISTORY. The same could be said for a similar phrase - The last two years buyers were getting the lowest mortgage interest rates IN HISTORY. Neither of those statements mean that it should be considered “normal”. So as the market continues to shift, remember that we are reverting back to “normal”, not a “crash”.
Now that you're no longer prepping for the real estate apocalypse, come take a glance at what we are seeing in the field today. Let's break this down for sellers and buyers with current market trends and our real life examples.
To our sellers, a quick story: We had a great home go on the market in mid July. The home had 1 showing, 4 open house attendees on Saturday and 0 at the open on Sunday. They ended up with 1 offer - list price with contingencies (inspection and appraisal). Getting a list price offer is GREAT and the status quo in a normal market. The sellers and I discussed the contingencies and prepared ourselves with the likelihood of repairs needing to be completed or a credit given to get the contract to closing. This is “normal”. Moral of the story - team up with an experienced agent who is comfortable navigating the current market and can advise you on expectations for what "normal" inspection costs can run you. You have to be ready for a market where putting a sign in the yard doesn't automatically guarantee a sale. Invest in your home’s condition, discuss strategic marketing plans that extend beyond the first Open House weekend, understand that initial pricing is key and that price adjustments are “normal” when you haven't secured an offer within the first month online.
To our buyers: Have you found an agent and lender to help you get your ducks in a row for when you are ready to strike? If no, why not? This is one of my greatest pieces of advice I can give you (even if your house hunting timeline is 2023). We know that a "high interest rate" sounds scary, but it's really not when you look at what an interest rate really means for you. Each buyer gets different rates based on their specific financials and loan product. It is a personal estimation that reveals what YOU can afford to pay, not anyone else. So people comparing their personal interest rates is like comparing apples to oranges! For example, the week of July 18th we helped a buyer go under contract on her "dream home" when the interest rates had even taken a dip down to below 5% (4.8% to be exact). She had actually started working with us and her lender back in April to strategize her plan of action and begin exploring all of her options. Giving yourself time to explore all of the different neighborhoods, price points, and conditions of homes, makes it so much easier to say YES when you see your home pop up. Basically, the “right time to buy” is when you are ready. Connecting with a lender and then a real estate agent early in the process makes the “right time” that much easier to determine.
Hot News for August:
This is historically the best time to buy in the DMV during a calendar year. Buyers are out of town, which reduces competition and increases your buying power (so go on, get that home inspection or appraisal contingency!). September tends to see a tick up in inventory and that continues into December. But, be mindful, the other buyers are back on the prowl and competition is still prevalent in the fall.
Well, I think that's enough for all you out there to think on today/this month. If you have any further questions or interest in hearing more send us a note and we can connect! Jillian@jilliankeckhogan.com
