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Our Town’s, Deborah Ratchford, has the latest information as the Housing Market Makes a Shift this Winter
Don’t Forget the importance of Pre-listing updates as the Housing Market Makes a Shift this Winter
With interest rates going up more than 4 times this year, the residential real estate market is starting to look a bit different. These days, home buyers have more challenging times obtaining mortgages than in previous years. While fewer lenders are approving mortgages, house prices are still relatively consistent. Even with fewer buyers in the market, more inventory, and competition among sellers, home values are still high. Most homeowners stand to make a sizable profit if they adapt to market conditions before selling this year. So, despite these shifting conditions, home buyers, sellers, and real estate agents can navigate the market successfully with some foresight and strategy.
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Here’s What Sellers Should Think About
As conditions shift from catering to sellers to giving buyers a slight upper hand in the second half of 2022, homeowners and real estate agents must adjust expectations and listing strategies, but thankfully, not too dramatically. Compared to the past few years through the pandemic, there’s a more heightened need to update homes and market listings competitively. Homes that sell at top prices always require these efforts, no matter what the market conditions are.
With that said, before getting on the market…. Take a hard look at your house’s condition and curb appeal and bring it up to date before going on the market. If you’re a homeowner or real estate agent and your goal is to increase your home value as much as possible, pre-listing home improvements are essential. Don’t forget that even small investments like new paint or refreshed flooring will make your house more appealing. Exploring and planning for necessary renovations is wise if your house requires more extensive repairs.
Dealing with the Wintertime Housing Market
If You are a Buyer: This winter, you can enjoy a slower-paced market, more inventory, fewer multiple offers on one home and in some cases, a slowdown in rising home prices. Because competition is a bit steeper for homeowners, you’re likely to see newly updated and livable homes.
If You are a Seller: Focus on curb appeal and home improvement updates before listing and not after you are on the market because the first buyers looking at your house are most ready to make an offer on your house. It’s so important to make sure your interior and exterior walls are fresh, the flooring is immaculate, and your home’s fixtures and appliances are modern. Every repair and update you make will translate to a higher selling price and less time on the market. Be mindful of the timelines for obtaining required permits to remodel homes. Some permit offices do not process paperwork for months, so build this into your pre-listing prep. The staging and photography of your house are very important to create a great listing.
The Winter housing market has fewer buyers and more inventory
This winter’s housing market is driven by higher interest rates that make mortgages more expensive and harder to obtain. The buyers’ ability to qualify for home mortgages has decreased. Also, they can afford less than they would have recently since increases to interest rates make monthly payments substantially higher (by hundreds, and sometimes thousands, of dollars). With fewer buyers competing for inventory, the pace and profitability of the housing market aren’t as fast or advantageous for homeowners. This winter’s market translates to longer property listing times and more inventory than in previous months and years. As fewer buyers browse the market and the number of homes in local markets increases, pre-listing home improvements and upgrades are critical for any homeowner who wants to sell relatively quickly with upmarket profit margins.
Prospective home buyers who qualify for mortgages will have more options to choose from and may have a bit more bargaining power. Buyers should ask their loan officers about interest buy down programs which will bring their monthly payment down and, in many cases, a motivated seller will pay for the cost of an interest rate buy down.
This Winter housing market can still be advantageous for buyers, sellers, and real estate agents. The expectations have changed; sellers with solid pre-listing home improvement plans will be rewarded. Don’t forget to consult with an experienced real estate agent for the best guidance on making their house as appealing as possible.
Deborah Ratchford Keller Williams Realty Cityside 678-570-4779 / Debratchford@kw.com
Call the agent that knows the market and how to get over the asking price. Results Driven!!! Call today for your FREE market analysis.
Deborah M Ratchford Keller Williams Cityside Again! it DidDeb 3350 Atlanta Road Smyrna, GA 30080 C: 678-570-4779 O: 770-874-6205
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