2017 is shaping up to be a fantastic year for real estate, with home prices for starter and midrange homes rising towards pre-recession peaks and interest rates rising modestly. Anyone interested in buying a home would do well to look at the current market, and sellers will likely find a plethora of interested buyers to purchase at the right price.
As the market continues to shift, it’s important to utilize best practices to ensure that you’re getting the most out of the real estate transactions you’re participating in. Here are the best tips for real estate transactions in 2017:
Get That Starter Home Now
If you’re interested in buying your first home, don’t waste any time! More than half of home sales in 2017 are expected to be first-time buyers, and mostly to the millennial set. Competition could become fierce in the Spring for starter homes in desirable areas, so don’t be afraid to jump right into the market.
Hire the Right Agent
One of the best investments you can make as a seller is researching agents. A bad hire can cost you months of worried waiting and tens of thousands of dollars, so do your due diligence if you’re interested in selling your home. Start by looking at an agent’s online marketing materials and listings, as well as profiles of agents on LinkedIn. Once you’ve narrowed your choices down to two or three potential agents, ask for everything from local comps to sales-activity reports to gauge their competence and interest in being of service.
There’s Always More Loan Money
Borrowers with FICO scores as low as 690 are able to get conforming mortgage loans, and about 2/3rds of mortgage refinancings were approved in the fourth quarter in 2016 (as opposed to one-half at the end of 2014). In short, it’s becoming easier and easier to borrow money to buy a home, though the better your credit score, the better your rate will be- and that’s unlikely to change anytime soon.
Improving Your Home
There are a number of things home sellers can do to enhance the appearance of their home and increase buyer interest, ranging from cleaning, to depersonalizing the space, to adding brighter light bulbs in dark areas to illuminate the home. Investing a small amount of time towards ensuring that your home is well-kept and attractive will go a long way.
It Might be Time to Buy
In many areas, rents are rising faster than home values, while mortgage rates remain low. Renters now account for 37% of households, the highest level in 50 years, and it seems increasingly likely that there’ll be a coming-out party for renters-turned buyers (especially if they plan to stay put for 5-10 years after buying).
If Buying, Don’t Believe It’s Yours
It can be quite tempting to bank on a done deal or other verbal promises before signing a contract, but it can be quite dangerous. Many agents give buyers false hope and use their offers to bid up the price for preferred buyers, so keep other homes in mind and obtain proof of funding and pre-approval, if possible.
Source: Bankrate