Tips for Buyers and Sellers in an Uncertain Market
If you’re thinking about buying or selling a piece of real estate, you do need to be aware that the market can experience cyclical variations. For example, the rapid price rise of a few years ago has leveled off, leaving many buyers and sellers wondering what’s next. Here are a few relevant tips.
The first, and possibly most important, tip is that it’s still a buyer’s market. In fact, issues in the mortgage industry, along with a less-than-cheery employment picture, have led to a good number of affordable homes on the market, many due to foreclosures. While it’s never pleasant for a property to be foreclosed, this action affords plenty of opportunities for buyers due to the low cost of such properties.
Next, it’s a great market for first time buyers, largely because there still are government tax credits available. Even sellers benefit can from this, since the result is a larger pool of qualified buyers who are seriously shopping for a home.
Interest rates are a prime driving force in the real estate market, and right now it’s still possible to get an attractive rate. Lower rates help more people to qualify for a mortgage — always good news for both buyers and sellers. If you already own a property and have an adjustable rate mortgage, it’s time to consider switching to a more stable fixed rate loan.
Another positive reason for the positive real estste market is that homes with lower prices are exceptionally popular at the moment. However, if you’re interested in buying a low-cost property, there’s likely to be some competition. This is no reason, though, to be discouraged. Just be prepared to do a bit of extra work when buying an inexpensive home.
A word of advice to sellers: remember that you’re not likely to be able to price your home as competitively as short sales and foreclosures. Foreclosures, in particular, often are in poor condition. So it’s wise for those who are putting such properties on the market to do a bit of inexpensive sprucing up in order to attract a larger number of buyers.
Timing is an important factor as well. It’s a buyer’s market and prices are exceptionally low. Also presently available is a stockpile of foreclosures. Even so, there’s still room for sellers to offer attractive, well-priced properties for sale.
Although the real estate market can be bumpy, buyers and sellers should be able to persevere and negotiate it with success.