A Good Time for Buyers and Sellers

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It’s no secret that after 2007 the real estate market hit a rough patch for a few years. Inventory was way up because of all the foreclosed and distressed properties, so with supply up, prices inevitably went down thanks to the law of supply and demand. Fast forward to today. Now inventory is down, and prices have consistently gone up over the past year. Top off this news with interest rates remaining historically low. So what does this mean for the buyer and seller?

If you’ve thought of selling your home, the time is now. Since there are fewer homes on the market, there’s more competition for available homes. Low inventory often translates into multiple bids for homes in good condition, high list-to-sale price ratios and being able to negotiate better terms. It’s a great time for sellers.

So when selling your home, if you want to get top dollar for your property, take advantage of the low inventory. Here’s the thing: supply and demand affect what you’ll get for your home. When everyone who has been thinking about selling their home puts their home on the market is not the time to dive in—if you want to get the most out of your home. At the end of the day, you have a better chance at success if you decide to sell now, instead of waiting until all the Joneses get into the market.

If you’re in the market to buy a home, be aggressive. When a home that you’re interested in hits the market, plan to see it as soon as possible and make the best possible offer that’s at an appropriate price point for the seller. Remember, inventory is low. If you hesitate, the property could be gone because others will be making offers.

Right now, you can afford more of a home because of low interest rates. Interest rates are still below 4% with some as low as 3% with a 15- or 20-year fixed-rate mortgage. Mortgage bankers are eager to lend. When interest rates rise, you could get locked into spending a few hundred extra dollars a month on your payment. So why wait?

Give us a call so we can tell you where to be positioned and how to be successful in the market. Please contact us at (703) 401-7327 or visit us at www.russellarkin.com. We’d be happy to assist you.