If asked to describe the real estate market over the last few years in one word, “challenging” sums it up nicely. We have watched the inventory shrink, the prices remain strong and stable, and the mortgage interest rates hit over 7%. We have watched buyers and sellers drop out of the market, waiting to see where the crazy post-COVID economy would take us. If ever there was a time when a professional realtor could be the difference between success and failure, that time is now.
Whether you’re a buyer or a seller, 2025 is the balanced market of opportunity we have all been waiting for. The new year has brought a much more favorable inventory than we have seen in years, and lower interest rates are the icing on the cake. If you’ve been thinking about a move, I have some tips to get you from where you are to where you want to be.
The first and most crucial step is to understand your financial position. An experienced agent can help assess your home’s condition and current market value. A walk-through can help determine whether your home is “show-ready” or if a bit of furniture staging or updates could increase its value.
In addition to showing you how your home stacks up against comparable properties and suggesting a listing price, your CMA valuation can also be used to calculate your approximate net proceeds after closing costs and what funds you will have available to use for your next home purchase.
Once you have determined your financial position and have a clear idea of where you’d like to relocate, your realtor can help recommend qualified lenders that offer the most beneficial types of loans. Different financing options may be available in the city or a more rural setting, just like for a detached single-family home or a condo.
Understanding financing options can make a world of difference in terms of convenience. For example, a bridge loan allows you to buy your new home before selling your current one – no need to worry about matching up contract timelines and you can move when it is most convenient.
Once you have a solid grasp of your financial picture, you are ready to prepare your home to list.
Seller/Listing Tips
- Before listing, address any necessary repairs. A prospective buyer will notice surface-level issues during a showing and submit a lower offer; if repair items are more significant and possibly less visible, they will come up during the inspection. Completing repairs beforehand allows for a smooth transaction and ultimately, more money in your pocket.
- Professional photography is a must! Buyers fall in love with your home online before they see it, so make sure the photos show it in the best light.
- Base your price on market comps, not emotion. When you price yourself out of the market and your home sits, you will lose much more in the end. Your price can be strong and competitive, yet still realistic.
- Create space – clutter, oversized furniture, full cabinets and closets make your house feel much smaller than it is.
- Deep-cleaning is often overlooked, but so very necessary. If you don’t have the time, your agent can recommend a company to come in and help.
Buyer Tips
- Get a current pre-qualification from a lender – knowing what you are comfortable spending is imperative for making quick moves in a fast market.
- Negotiate wisely. A skilled agent can offer non-monetary options to help create a compromise and craft an unbeatable offer.
- Keep your mind open to options outside your idea of the perfect property; people are often surprised to fall in love with a home they hadn’t envisioned. An experienced agent can present unexpected options that could be an ideal fit.
Whether the time is now, next month or in a few years, consult with an agent who will keep you in the know with property and market updates a few times a year. Realtors have great tools to share and are always glad to help.
Happy house hunting!
