2022 has been one crazy
and booming year for Real Estate!
Several months ago the cost of borrowing was at a shockingly low rate and buyers were able to spend more than they ever thought was possible. Buyer competition was at an all time high due to low inventory and insane bidding wars which caused rising home prices. Buyers were intimidated and the sellers were flourishing in the market. Fast forward to today, the buyer competition has diminished quite a bit due to the every-rising mortgage rates and burnt out consumers. Many people see the rising rates as a threat, but in reality it is giving homebuyers a chance to find obtainable deals. It is time for the home buyers to succeed!
Here are a few tips & tricks to help you get that property you deserve.
N E G O T I A T E
With more and more buyers taking a step back from their home search due to the rising interest rates, homes are staying on the market longer as inventory is increasing. There is less demand, which means price and contingencies can be negotiated.
Sellers no longer have an audience to receive an insane multiple bid war and offer top dollar for their property. We have seen a shift since spring and early summer - buyers are able to put in a more realistic offer on some of the lingering inventories and negotiate to an agreeable price and terms.
2. U P D A T E Y O U R P R E - A P P R O V A L
All-cash buyers were highly desirable, and for the past year, sellers were often overlooking offers with a mortgage financing contingency. With less bidding wars & less competition, financed buyers can come out of the woodwork and start looking for their new home. A pre-approval from a lender typically lasts for about 90 days. Buyers should check-in with their lender often, with the rising rates, your home budget might change.
3. E X P L O R E A V A I L A B L E M O R T G A G E S
Time to sit down and think about what you are really looking for in a home.
Are you and your family ready to live in your forever home for many years to come? - then a 30-year fixed rate mortgage may be the best suited for you.
Are you planning to purchase a new home before you sell your current one? - then a bridge loan might work best.
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B U Y E R S - now it is your turn to obtain the home / property of your dreams. You have the time to do some research and speak with a reputable mortgage broker and determine which loan will help you purchase your next home. SKW&CO works with great lenders that we’d be happy to recommend! With the competition dwindling, that sense of urgency to put in that unrealistic offer has subsided and we are here to guide you through it.