Fall is here. Which means the “holiday season” is creeping up on us.
Which, when you’re a real estate agent, inevitably brings questions about whether it makes sense to even list a house for sale, or start looking to buy a house at this point, or…
“Should we wait ‘til Spring?”
If that’s ever crossed your mind, you’re not alone. Lots of people think that way.
But why?
The most common reasons sellers give: there are less buyers looking.
The most common reason buyers give: there aren’t as many houses for sale.
Kind of a self-fulfilling prophecy…but, also kind of a myth.
I don’t have any proof, but I have to wonder if this mindset wasn’t started by part-time real estate agents who wanted down time during the holidays to shop, bake, and go to parties.
It’s a myth I wish truly existed. Because, while there’s certainly busier times of the year, as a full-time agent, I know there’s always great houses being sold and bought. Not just during the season, but even on holidays.
(I’m lucky to enjoy just a few hours on an actual holiday without some amount of work for my clients.)
Spring is a long ways away. And there are plenty of houses to buy…and plenty of buyers to sell to between now and then.
Okay, maybe you think about barbeques, pool parties, or parades first.
The point is, the first thought for most people isn’t about the nitty-gritty that we’re actually celebrating — our independence as a nation.
Deep down, we all know that’s what it’s all about. And we respect it. But, we’re also human. Who can blame us for enjoying our freedom watching fireworks, without giving all that much thought about everything our founding fathers did to get us here?
So it is in real estate… There’s a lot of focus on the “fireworks” in real estate. The big, glorious, flashy, exciting moments. Like…
The moment your house first hits the market.
Seeing the pictures of your house all over the Internet.
Throngs of people walking through your first open house.
Receiving offers from buyers…maybe even multiple offers.
Going under contract.
Walking into “the” house, and falling in love with it.
Making an offer on the house you love, and having it accepted.
Closing on the sale or purchase of your home.
All really exciting “firework” moments. But they’re not the full story. There’s a lot of stuff behind the scenes in order to get to those fun, celebratory moments. A lot of thought, knowledge, skill, and work… Not necessarily fun, or sexy stuff. But it’s all important. It’s all necessary to get to those exciting “fireworks” moments.
Not that the behind the scenes stuff should be something you think about. As a consumer, you should enjoy the glorious moments. Leave the nitty-gritty to me.
Just know that there’s more to it than the “fireworks” you want to see when you buy or sell a house.
Looking to buy a home? Here are five essential tips for making the process as smooth as possible.
Get your finances in order.
Start by getting a full picture of your credit. Obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. Next, find a suitable lender and get pre-approved for a loan. This will put you in a better position to make a serious offer when you do find the right house.
Find a house you can afford.
As with engagement rings, there’s a general rule of thumb when it comes to buying a home: two-and-a-half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. Don’t forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, etc.
Hire a professional.
While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web. That’s why you’re better off using a professional agent than going it alone. You really should have an agent that will represent only you in the transaction who will have only your interests at heart and can help you with strategies during the bidding process.
Do your homework.
Before making a bid, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? Next, look at sales trends of similar homes in the area or neighborhood. Look at prices for the last few months. Come up with an asking price that’s competitive, but also realistic. Otherwise, you may end up ticking off your seller. Of course, I’ll help you with that. I can provide a CMA for each property that you’re seriously looking at.
Think long term.
Obviously, you shouldn’t buy unless you’re sure you’ll be staying put for at least a few years (if only for capital gains reasons). Beyond that, you should buy in a neighborhood with good schools. Whether you have children or not, this will have an impact on your new home’s resale value down the line. When it comes to the house itself, you should hire your own home inspector, who can point out potential problems that could require costly repairs in the future. I have several inspectors that I have worked with in the past and trust to do a great job for you.
I’m sure you don’t need another reminder that Daylight Saving Time is this weekend.
Like we even need a reminder to set our clocks anymore. Most of them adjust on their own nowadays anyway.
The hard part is adjusting ourselves!
Did we lose an hour, or gain an hour? Do I get to sleep in? Or, do I lose an hour of sleep?
And there’s always a good chance that we’ll slip up and oversleep, or simply show up an hour late, or an hour early, for something.
Not a big deal for the most part. You get into the swing of it in a day or two.
But what we see in real estate around this time can be a big deal…
Right around now is when the Spring market is just around the corner. It’s kind of here already, but not in full swing. Real estate agents are always on top of the shift and ready for it, because it’s our business. But to give an exact date that the Spring market begins, and set a clock to it is impossible.
Many homeowners and homebuyers miss out on critical time and opportunities, because there isn’t really a formal reminder that Spring market is coming, and that you should plan accordingly.
Consider this your reminder…the Spring market is coming!
So, if you’re planning on buying this Spring, let’s start now.
If you’re considering selling this Spring, let’s get things rolling in the next couple of weeks.
Because you need to be in full swing already when the Spring market hits.
Jumping in mid-way through can hurt you. Other buyers have already gotten their bearings, and are jumping on the best houses and deals. And other sellers who are on the market at just the right time are the ones who get the best buyers in the market.
Do you believe whether a groundhog sees its shadow or not is a true indication of when Spring will come?
A lot of people aren’t even sure, which means we’re going to have more winter.
But even if you do, it doesn’t make a whole lot of sense. If it’s sunny, and he sees his shadow, that means a longer winter. If it’s cloudy and he doesn’t see his shadow, it means Spring will come sooner. That seems totally backward.
And then there are lots of different groundhogs… which are you supposed to believe?
Groundhogs Don’t Predict Spring
Truth is, Spring never actually comes sooner, even if every single groundhog doesn’t see his shadow. It begins on a specific calendar day.
Now the weather on the other hand, that’s a different story. The weather will be what it will be. Weather is something people make small talk about.
But a groundhog predicting it!? Meteorologists can barely do it.
So, most people don’t put a whole lot of stock in what the groundhogs “say” on Groundhog Day. However, a lot of people do put stock in the “Spring market” when it comes to real estate.
Is Spring The Best Time To Buy And Sell Real Estate?
So many people believe it is the “best” time to buy or sell real estate. Not necessarily.
Sure, there is a definitely a “Spring market”.
But, first of all, to even say exactly what day it begins is impossible. Some real estate agents even say the Spring market begins in January. Others may say March. Or April. Maybe May.
And while there is no definite answer as to when the Spring market actually begins, it’s even more inaccurate to say that it’s the best time for you to buy or sell a house.
It might be for some clients… but certainly not for everyone. It depends on so many variables, and upon the client’s specific scenario and needs.
My Advice To You
Don’t put stock in the “Spring market”, no matter what you hear, or who you hear it from.
Do not base your decisions about when to buy or sell upon something people talk about as lightly as the weather… or whether the Groundhog saw its shadow or not.
There is no one-size-fits-all answer.
But, if you are thinking about buying or selling, or both, then we should chat. And strategize.
Is now a better moment for you to begin buying or selling?
Or is it better for you to wait until Spring is “officially” here?
Or perhaps Summer…
Or Fall…
Or Winter…
Like I said, it depends on a whole lot of variables.
So, if you’re thinking of buying or selling, let’s just chat.
If not, just stick this in your head for future reference!
One of the main reasons people aren’t buying homes is they think they can’t afford it—especially the down payment. But, as it turns out, there are plenty of buyers out there who actually can afford to purchase a home, but their misconceptions about affordability are holding them back from making a move.
According to a recent survey from lender Laurel Road, 53% of Americans are concerned about their ability to afford a home. But a lot of that concern is because they don’t know what their options are.
A solid 58% of Americans surveyed said they planned to put down a 20% payment on a home, but 35% (and 46% of millennials) didn’t think they could afford to save that kind of down payment. But with alternative lending options, you don’t need 20% in order to buy a home! According to the National Association of Realtors, the median down-payment for first-time buyers is at 6%—significantly less than the 20% the majority of Americans believe they need in order to purchase a home.
The Takeaway
Your misconception about how much you need for a down payment could be holding you back from purchasing property. Explore the alternative loan options available to you and make your dream of owning a home a reality!
Fixing and flipping houses has become an exciting and profitable hobby (and sometimes full-time career) for many people, but these delicate real estate investments can be trickier than they seem.
