A Guide To Real Estate
Ladies and gentlemen: This isn't your mother or father's real estate market! While there are several similarities to past markets, the mixture of politics, economics, finance, uncertainty, world affairs/events, interest rates, and lack of predictability, have formed a somewhat-uneasy alliance, which, when understood and considered, have little ultimate impact, yet, all-too-often, produce a confluence of somewhat undesirable circumstances, which create stumbling blocks, obstacles, and obstructions. Perhaps more than ever, who you decide on, and why, to represent your interests, as your Real Estate Professional, has a major impact, in attaining the most desirable goals. Before you decide on this interview, carefully consider your objectives and goals, in a reasonable, non-emotional manner. As opposed to merely saying you intend to get the best price, or some pie-in-the-sky number, ask yourself, what you could be willing to pay for, to buy your house! Your real estate agent should give you Comparables, or what similar houses, in your market, have recently sold for. This is the best indication of suggested listing prices, but remember that each house differs, and slight differences often overly impact exactly what a buyer is welling to cover, or if he's even interested. Let's review 5 major considerations in the current market.
1. Time frame interest rates have been at, or near historic lows: The past couple of years, interest rates, and thus mortgages, have been at or near, historic lows. It has permitted people to buy more house for the exact same monthly payment, the uncertainty continues to exist, as to how much longer they will remain so low. Most experts are calling for interest rates to nudge slightly upward in the next month or two, but they issue the caveat, it depends on the overall economic conditions.
2. Historically low ownership rate: As a result of several factors, like the economy, housing costs (especially in certain areas), rental availabilities, the required downpayment (which many don't have, or don't need to commit), and uncertainty, with regards to the economy, jobs, etc, the percentage of individuals owning their very own home is below it has been around decades.
3. Low inventory: Partly due to the demographics, in terms of age ranges, etc, and somewhat because many homeowners ask themselves where they will move, along with many individuals retiring later, we're witnessing, in many regions, a low inventory of homes listed on the market.
4. Willing and able buyers: There look like available buyers, in a few regions, but these individuals, in many cases are annoyed by the combination of low inventory, mortgage and downpayment obstacles, uncertainties, etc.
5. Mortgage qualifications: Banks and mortgage companies are constantly tweaking their requirements for accepting buyers for mortgage consideration. Within the last few many years, in order to qualify for the cheapest available rate, one's credit score must be somewhat higher than previously, as well as other debt considerations. While this is often overcome, one must find the correct buyer, with sufficient patience, energy and willingness, to overcome potential frustrations, etc.
Understanding the nuances makes one better capable of realistically listing their property for sale. Carefully interview potential real estate agents, and choose the main one who's best for you!
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