How to Navigate the Buyers Market in the Coming Months
You’ve probably seen houses for sale around town with the real estate signs up for what seems like forever. Currently, Homes in Central Florida are on the market for a whooping average of 58 days before going under contract. (If you’re really into stats, here’s a link to the Orlando Regional Realtor Association fact sheet.)
Median prices are still inching up from this time last year (2.7% to $380,000), and we aren’t seeing the huge price rises from a few years ago. But there have been price cuts in several communities as homes sit on the market for weeks. For those in the market to buy a house, this might be a good time to make that happen. Here’s what buyers need to know:
Investigate Mortgage Options
Mortgage interest rates have gone down since the high of 7.8% this time last year. Right now they are around 6.5%. That means you have more buying power. You can shop for a more expensive home or pay a lower monthly payment. Lenders also allow you to “buy down” the interest rate. Without getting into too much detail here, if you’re thinking about buying, this is the time to talk to a mortgage professional. In the meantime, this article explains mortgage points and how they work. You can also get rough estimates of what your monthly and down payments would look like using a Points calculator.
Look for Houses that have been Sitting on the Market
Every day a house for sale sits on the market is a day in your favor. Look for homes that have been on the market 30+ days. I can guarantee that the seller is feeling nervous and is looking for an offer – any offer.
Offer Lower than Asking Price
Offer lower than the asking price and don’t be afraid to negotiate. I have clients who tell me they don’t feel comfortable haggling over the price. That’s my job, and in this market, it pays to negotiate. Besides price, negotiating can include sellers helping with closing costs, making repairs to the property, and paying the buyer agent commission.
Buy During the Holidays and an Election
Right now is an excellent time to buy. The market naturally slows down because of the holidays and is even slower right now due to the national election. All this motivates sellers to jump on a reasonable offer, especially if there haven’t been many or any offers.
Don’t Wait for Interest Rates or Prices to Go Down
As I said earlier, prices are still creeping up. Interest rates may come down, but there’s no guarantee of that. Right now, inventory is way up – there are 71% more houses on the market right now than there were a year ago. If interest rates do go down into the 5% range, there will be a lot of buyers looking and a lot more competition which in turn leads to higher prices.
I’m here to help. Do you know someone starting the purchase process? Please pass this blog on. Even if the plan is to purchase sometime down the road, it might be good to start getting information to make a move sooner rather than later.
