Real Estate News & Views

Buyers and Sellers: Now is the time to spring into action

by Jackie Scheller

Are we there yet? 

2023 was a definite roller coaster ride in the real estate market. Both buyers and sellers encountered previously unseen scenarios. Lawrence Yun, chief economist for the National Association of Realtors indicated the following in his January 2024 update:

“With inflation calming, we can be confident of at least a few interest rate reductions in 2024.”

Bob Yopko, a local lender in Chelsea for First Equity Residential Mortgage, Inc., has had years of success helping buyers with initial mortgages and refinancing. Recently he offered advice for real estate clients who have become weary of waiting to make a move.

“Interest rates are in the sixes, depending upon program and parameters. Now is a great time to buy. Rates are likely to decline, but with the ease of refinancing, borrowers can lock in today’s home price and rates and then take advantage 6-9 months from now when the rates drop again.”

It is time to spring into action!

Sellers: Get organized. Set your goals. Meet with a licensed Realtor or two; remember to discuss the commission rate and know it is negotiable up to a point. Then, clean, clean, clean. Inventory is needed. Prices are stable. The local real estate boards are continuing to report home sales within 98% of the list price.

Unless an unforeseen circumstance occurs, you should be able to close within 120 days at the price your Realtor has indicated, usually by providing you with comparable home sales (“comps”) in the area. The time on market is a bit longer and the rural average is for 17-20 showings to connect with your purchaser. This is an average, and we all have heard of sellers getting a buyer on Day One. We hope for that too!

First-time buyers: Get your credit report and clean up anything that may negatively impact your credit score. You will need proof of employment, pay stubs, and sometimes copies of tax returns. Be ready to clarify more questions than you can imagine. Student loan status, medical collections, and credit collections are possible showstoppers.

Get your act together before approaching a lender. Just because you punch a few numbers in online and receive an email that you should be approved for a mortgage does not mean that you can buy a home. Online folks are often farming for leads and give you a response that seems too good to be true because it is. Local lenders are a great resource and often offer competing mortgage programs. Be honest with your lender and set goals for yourself for having your credit issues cleared up and paid off. Limit any major purchases and continue to save.

Hire a Realtor to represent you as soon as you can. They can help you with the lender questions too. As a team, you will be more successful achieving your goal of home ownership.

Experienced buyers: For those wanting to buy up, move a parent, move to another area or move into a new build, it is a great time to get into the market. Your equity in your existing home will help to determine what next steps are needed.

We are fortunate to have outstanding Realtors in our area. Contact a reputable Realtor today for a no-obligation consultation and get your questions answered. Some experts in the field are predicting that 2024 will out-perform 2023, and you no longer need to sit on the sidelines. Instead, spring into action today!

Don’t sit on the sidelines in 2024. Spring into action to begin the process for buying or selling a home. Image credit: Maria Ziegler on unsplash.com

Jackie Scheller is a licensed Realtor/real estate broker, local business owner, entrepreneur, and retired business teacher. She holds a master’s degree in education from Wayne State and a bachelor of arts from Eastern Michigan University.