Are we in for a market correction?
Historically, Presidential election years have made for some very interesting times for the housing market. And when you combine this year’s highly contentious race with the uncertainty in everything from Federal Interest Rates to the Brexit market shake up, the only thing you CAN count on is that the next year is going to be a bumpy ride.
So as a realtor, how do you prepare for volatile times ahead?
Listing agents: Price homes to move quickly to avoid risk. Make sure your clients understand that by setting too high of an asking price it’s likely that the property will stay on the market longer, leading to increased non-equity costs like mortgage interest, real estate taxes and maintenance fees, not to mention lost opportunities such as securing their next home and even selling their existing property at all should the market bottom out. Their best option - set a reasonable asking price to achieve a quicker sale and avoid the risk of future market uncertainty.
Buyers agents: Counsel your clients to be patient. Buying a new home is exciting, but it’s also a decision that they’ll likely have to live with, and IN, for quite a while. Encourage them to look at multiple, comparable properties before they get embroiled in a bidding war over their ‘dream’ house. Yes, that house may be ideal, but chances are there’s another home that’s just as nice, maybe even better, if they can take the rational, non-emotional approach to home buying.
The bottom line for both buyers and sellers is to take emotion and greed out of the equation. Yes, everyone wants to get the ‘best’ deal on both sides of the table and walk away feeling like a ‘winner.’ But in times like these, the real winner is the one who keeps his cool, plays his cards right and walks away knowing he didn’t lose.