Timing is everything, is it time for you to find your new home?
The overall feedback I have from my upcoming buyers is that they are waiting. Home prices in the Boise area increased tremendously in the last two years and it seems we finally have a break. No more competitive offers, prices are incrementally coming down, sellers are becoming very flexible. They are agreeing to price reductions, inspection items, concessions, and buy downs for the buyer's interest rate. And still, homes are sitting. So I ask, what are you waiting for?
The answer they have given is that it is still too high an amount when they consider that the mortgage rates were on the rise. They are waiting for the bottom, as low as it is going to go. And while interest rates have increased, it is in correspondence with the decline of house prices. I would be neglectful not to mention that we were a bit spoiled with the rates when they fell below 3%. Timing truly is everything, home prices are continuing to drop, and fortunately. interest rates have actually come down for the last four consecutive weeks. If that doesn't say we are coming to our bottom, I don't know what does. The market is ripe for buyers, so where are they? Why isn't this excessive inventory we are not accustom to flying off the shelf? If you are waiting to buy, right now is the time to start putting everything in order. Here is four more reasons you should buy your next home right now....
#1 Less competition from other buyers
While all the other buyers are waiting, and waiting, and waiting, you could be buying. My advice if it is the price you need, and want your rate to be less, you can refinance after six months (and take advantage of buying down the rate on the seller's dime). Personally, I just came off a season for Sellers. So many competitive offers, 50k, 75k, 100k over asking, and still buyers would be beat out. How nice would it be for you to actually get to negotiate for the home you want, the way you want it?
#2 Sellers are motovated
It's been a long time since I have seen Sellers be so agreeable. Gone are the days of making enormous offers and waiving all you contingencies. Offer what you can afford, offer for the payment you need.
#3: Potential for negotiation
It's not all about the price. I'll say it again. It is not all about the price. At the end of the day, what my buyer wants to do is what we ultimately do, but hear me out. I get so frustrated by the low offer that is only $5,000 or $10,000 or even $15,000. How much is the needle really moving? When shaving a little off the top of the price you may only be saving yourself, $20, $50 to $100 per month on your mortgage. Do something impactful. Take the $15,000 you want off the price and ask for the seller to pay your closing costs, to help buy down the rate (which you can do, up to 2 points) and when that inspection comes back, ask for things to be fixed and replaced so you can move in worry free. Now that will make a big difference in your bank account.
#4 More time for house hunting
It was just last Summer that you could have more than two things on your want list and I would literally come up with no houses to show. Or maybe one or two if I was lucky, but "oh, wait" the listing agent says it has 10 offers already. I was writing offers at 11pm the moment they came on the market to try to get our offer in first. We can finally breath a little. You can go and look at 10 or 20 houses. Spend a weekend visiting open houses, have a want list as long as your arm and actually find several to choose from. We have gone from "Just get into anything you can afford and wait out the market" to "Let's find you dream home."
I know it feels like you should go with the crowd, that everything regarding the housing market in the news is doom and gloom. But I assure you the opportunity is out there. You just need the right perspective and motovation. I hope this insight helps.
At House of Palmer, we pride ourselves on finding the advantage for our clients and leveraging it with all we have. Put us to work for you and we promise to do everything we can to make your real estate goals achievable.
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