Cheers! So I am outside of your area most likely, unless you handle northern Virginia. The market here is crazy. My wife and I want to move from where we are (Leesburg) due to wanting to get into a nice ranch instead of stairs.
Issue is not a lot of ranch houses out here unless you want to build, that's one of the issues.
So, with the market being as hot as it is, there's some homeowners selling by listing their properties lower than even market would dictate and then hoping for a bidding war. Sometimes it works, sometimes not.
We were thinking of selling, but we need a certain price point. If we don't get it, we don't move. If we did sell, we would end up renting because we're going to need time unfortunately to find what we want in this area. We again, want a ranch with at least an acre of land. Not easy to come by.
Do you think that the market will continue with low inventory next year? Would a slight increase in interest rates cause an issue? I would think even if it went to 3.5% we wouldn't see an issue?
We also were in the middle of a refinance, and contemplating do we stay here and refinance... just waiting on a few things unless we cancel... Not sure the way to go here. We are having a local agent come in tomorrow to assess the property to get an idea of what the price point could be.
So, could use some words of wisdom to help navigate through this. Thanks!
Next, millions of people lost their jobs due to COVID. Once their forbearance is over, they will start missing payments. The foreclosures will come next year and the year after adding more inventory...possibly at lower prices so banks can dump the properties.
If there is a particular price that you must have, then list it at about $10k over that amount and list the home marketed with closing costs included. FHA loans allow for sellers to contribute up to 6% of the purchase price as a closing cost credit.
Make sure your home does not need repairs and is almost turn key. Be flexible on the closing date even if it means you have to leave quickly and rent somewhere.
one month of houses. So I would think next
year would follow. People get offers in a day or
so. We also are thinking of listing by owner due
to commissions being 6%
Here in Northern NJ a friend of mine is close to retirement. He already knows he is moving south. Sold his house earlier this month and will rent for the next year or so before heading south. He was afraid the market would cool off by the time he was actually ready to move. Although he has to rent for the next year or so he now has flexibility. Should the market drop he has his gains from his house and can buy low. If the market doesnt move at least he has his capital to purchase when ready to move out of state.
Good luck.
I have several real estate agent friends who expect prices to settle down. The bidding war scenario is not as active as only a month ago. They do not expect prices to suddenly drop but with the holidays and winter they expect some normalization.
As I said in the first paragraph, financing is an issue as banks are turning down people with solid credit when offers get too far above the comparables in the neighborhood.
one month of houses. So I would think next
year would follow. People get offers in a day or
so. We also are thinking of listing by owner due
to commissions being 6%
Not in your market so can't touch on the specifics but wanted to give a heads up that commission is always negotiable. You can also look into ibuyers if they're in your area
My area is seeing a huge migration of NYC renters, housing inventory is low and the bidding war is crazy. Typical 8-12% over ask is now 20-30% over the list.
Whatever your decision is, let the agent know the bottom figure you will accept. This way they can price the house accordingly. Also remember that pricing it lower for a bidding war increases house traffic and ppl they will be priced out b/c of budget. Interview 3-4 different agents in the area