You don't have to be Warren Buffet or Jeff Bezos to think differently or to understand that when the market is all moving one way, there may be an opportunity in the opposite direction.
What do we mean by that?
It's our way of telling you that right now could be the best time to buy that home you've been dreaming about! It's true, and there are things you can do right now to make buying easier.
The mortgage data trends are telling us that applications are down, which could mean fewer buyers in the market may be prepared to compete for the property you just fell in love with.
As experienced brokers in our neighborhood, we know that going one-on-one with the seller means you'll have plenty of negotiation leverage, unhindered by competing offers.
We understand the counter-argument is high, rising interest rates.
Yes, interest rates have risen, but what about sliding values? The Federal Reserve has signaled that after six rises in the cash rate this year, maybe America has had sufficient medicine, and inflation will now taper down.
When the Fed's thirst for hiking rates has turned the corner, most likely a few months down the road when spring and summer bring out most buyers, you will need to be ready for a market upswing. Now is the time to ensure you are ready to enter the market so you don't miss out on that house you've had your eye on.
If you get caught in the wave of increased buyers, the current discounts and leverage buyers have in the market will be off the table. Below are a few ideas on how you might approach the market today, whether you're an upgrader, downsizer, or even a first-time buyer.
Making a rash decision just because you want to capitalize on the tapering price trends will be a mistake. Create a plan and stick to it, and don't be put off by doomsayers in the market. If the time is right for you, it's right. Working with a Brightwork realtor means having a game plan partner who can help you create your plan and follow through.
Focusing on the style, size, and location of the property you wish to buy is the best action right now. Engage with a great broker and leave no stone unturned. This is the first part of creating the plan we just mentioned above. Create a detailed list of what you are looking for in your new home, and your Brightwork broker will work hard for you to find that perfect-for-you home in the perfect location.
Stay engaged with your bank or mortgage broker to clarify your budget. Rates are moving up, down, and sideways all the time. Resist the temptation to predict the market but always be in a position to know precisely what you can afford. A pre-approval in your back pocket is still essential. We can't stress this enough! Knowing what home you can afford and what monetary leverage you can use in your favor is crucial.
Today, you're in an excellent position to negotiate a great deal with a seller, and you shouldn't be afraid to walk away if that's how the conversation rolls. However, resist the temptation to lowball on a property you genuinely like just because you feel market conditions require it. You may just offend the seller and lose your chance to move into the home you want. Your Brightwork broker will be able to suggest ways you can negotiate with the seller without lowballing your offer.
Let's spend a moment on this. Buyers often lowball when they don't love the property but are prepared to buy at the right price. That's not always a recipe for long-term homeownership happiness. Your dream home does not have to be the bargain of the century. The value comes from how long you own it. Paying more for a home now that you plan to live in for a significant length of time will allow the home's price to increase and/or allow time for refinancing with a better interest rate.
Even when you find a great home at an excellent price, pause and take a breath. Make sure it will meet your needs for at least the next 5-10 years. This is especially important if you're starting a family or have little kids who'll turn into teenagers quicker than you might imagine. Remember that this is one of the biggest purchases you will make, and taking the time to make sure it will be the home you love for a while is very important.
Whether you're looking to upgrade, downsize, or are a first-time buyer, you need a broker ready to guide you to get you into your dream home. Take advantage of the market, and contact Brightwork today by calling 925-200-6000 or clicking here.
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