“The market is great right now…” is something you might hear every real estate agent saying lately. In fact, you could probably go back to the archives of 2008 when the market crashed and find advertising that echoes something similar. The phrase is used so often, it’s hard to know when it’s actually true. Right now, the market is great – for some people. At any given point in time, someone is benefiting from the current market conditions, whatever those conditions might be.
So, how can you benefit from the current real estate market? Is the market great right now for you? That’s what you really want to know. Let’s break it down.
There are very few homes on the market right now and quite a few buyers in the market. When you have low supply and high demand, prices go up. If your ultimate goal is to get top dollar for your home, selling right now could benefit you. Many homes have gone into bidding wars, meaning that sellers are getting thousands of dollars more than their asking price. This is always a good thing when you are wanting to sell your home and make the most profit you can.
Many buyers are able to get really good rates from a mortgage lender right now, making homeownership very appealing to many people. They now have more buying power than in previous markets. The downside for buyers is the low inventory. A buyer’s negotiating power is not going to be as strong on most properties and more than likely, as a buyer you will be paying a premium price. If you are going to be in your home for more than a few years, buying with a better rate often outweighs the higher cost you may face upfront, and this is why we are still seeing so many buyers in the market. If you really want to benefit as a homebuyer, put yourself in a position where you can have some flexibility on the time it takes to find a home since inventory is so low. If you have to sell first, can you find a place to stay or rent short-term in case you can’t find the perfect home right way? If you’re currently renting, being able to get out of your lease or renting month-to-month can help you reap the benefits of buying in this market.
If you are buying an investment property, it could be tricky right now with such low inventory. If you aren’t a cash investor, low rates make buying investment property appealing if you can find it. Even though prices are high, if you are truly in the investment game you are wanting to buy for future benefits. Paying a higher price now on a good property you plan on keeping for 20 years, could very well make you more money down the road. If you are a cash investor and aren’t concerned about rates, you will fare better when the market changes over to a buyer’s market, and there is more inventory to choose from. If you are looking to get out of investment properties and sell, now is a great time to do so. Prices are high, inventory is low, and the buyers are wanting to purchase homes.
The market is great right now – for someone. Is that someone you? Whether you are looking to buy, sell, or invest, there are different options available to you. Have a conversation with an agent at Bev & Co.- House of Brokers Realty, Inc. that understands the market and talk to them about how you can benefit from the current market conditions.