How to Attack the Current Market
There are different ways to get the most out of today’s adjusting market, depending on whether you are a buyer or a seller. The Fed just raised the interest rate another 0.75 percentage points last week. That means a reduction in purchasing power, so sellers need to acclimate … and so do buyers.
Here are three great tips for both buyers and sellers to attack today’s real estate market.
Buyers:
1) Get Pre-approved: Call great bankers and mortgage brokers and find out how much purchasing power you have and what rates they can give you! The increased interbank rate doesn’t mean you can’t cut a good deal with your local bank, mortgage broker or national lender. One way to get your rate reduced is through the favorable rates lenders give buyers who move money to their institutions. Ask what kind of rate they offer “private client“ buyers, and see if they can’t buy down your rate for you. Don’t forget to negotiate those buydown terms. If they’re stubborn, tell them that XYZ bank is doing it. They might match what other banks are pledging to you. Shop the banks! Banks that want to increase market share will be aggressive with their lending terms and cut great deals!
2) Look for property far and wide: Working with a great real estate broker will help you cover every listing out there. Be sure to look closely at “stale listings.” Sellers who’ve been on the market for 200 or more days can either have their heels dug in or are now desperate to cut deals! Doing a reverse search to see older listings is a great way to change it up and find a bargain.
3) Negotiate points other than price: Yes, you can now get a better closing price than 6-12 months ago, but there are other items you can negotiate that many people don’t think of. Closing costs, mansion tax, and even furniture and closing credits for small renovations/updates, such as a paint or appliance credit, are all on the table now!
Sellers:
1) Price it right: Even though the housing market is adjusting, there are buyers out there ready to purchase your home! The correct market listing price is the No. 1 strategy to get buyers into your home in big numbers. Because there is still relatively high demand and relatively low/housing supply, buyers will react strongly and aggressively to smartly priced properties. If you get more than one or two buyers interested in your home and making offers, go with the flow and let them set market value. Many times it will be higher than your asking price, even today!
2) Get your house ready: Staging, cleaning, painting and decluttering are all important now. Remember, it’s not your house anymore. You’re shifting your mindset to that of a SELLER, so put in a few thousand dollars to make it look as attractive as possible. If you don’t have the funds to do so, Compass Concierge has you covered (see link below). Think of it as a Broadway show: You want to get ready for your big opening night, and everything has to be perfect! Buyers will give you a standing ovation in the way of offers.
3) Timing: Listing at the right time of the year is key. I like to list during the right season and even the right day of the week. So, for example, a week before Labor Day? Not a good time to list. Between Christmas and New Year’s? Generally not a good time to list. Think strategically about when you’re going to list your home. There are generally two strong markets: the autumn market and the spring market. Choose one. The spring market is the busiest and is considered the high season for selling real estate in New York City, but you can still get deals done in fall and early summer, too.
These points can help buyers and sellers in any market, but in a shifting or adjusting market, these suggestions should be followed to a T. It’s not always easy to buy or sell real estate in a market like the one we’re in now, and these steps will ensure you get your deal done! If you have any further questions or want to learn more about how to sell or buy in an adjusting market and – how to attack his current market – feel free to reach out to us anytime at HoffmanTeam@compass.com
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Sun Sets at The Met
The Metropolitan Museum of Art is hosting a weekly music series that celebrates a diversity of rhythms, perspectives, and countries of origin. Free with Museum admission and no reservations required, the Sun Set series will run this summer on Friday and Saturday evenings through September 3.
Click HERE for event details and artist lineup!
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Portside, Brookfield Place's second seasonal waterfront pop-up, is officially open for business now through September and its on-site schedule of activities and programs looks incredibly fun!
From 9am - 9pm daily, the free and open-to-the-public outpost will look like a nautical-inspired oasis complete with beautiful views of the New York Harbor.
Click HERE for the full roster of events!
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