(Pictured above: Gull Lake Living | Click Here to view Gull Lake Waterfront Property for sale)
A New Statistic to Watch
A new statistic is trending in real estate and it shows how the market will carry on, regardless of interest rates AND how record high home equity helps.
Cash Buyers.
The percent of all-cash buyers (no mortgage) is the highest it has been since June of 2014. Sitting at 32% in January of 2024, these buyers have found a way to beat higher, but not high, interest rates and still move into their primary residence, invest in real estate, or buy that vacation home.
Why
Why does that matter? It means real estate finds a way to move no matter the circumstances. It means buyers are active. It means our market will continue to heat up in to 2024.
How?
For primary residence purchasers, they are leveraging the unexpected equity in their current home. Selling now means taking advantage of the record-breaking home value increases and paying all or mostly cash.
When?
Now is the time to take advantage. Rents are High. Rates are on a slight upswing (but still not HIGH!). But home values are still UP so if you're considering taking advantage of your home's equity, start preparing.
And if you don't own a home? Let us this be a reminder as to what you are investing in - your future and equity.
Spring Has Sprung - Kind Of
Michiganders tend to follow seasons, even in big decisions like real estate, and spring seems to want to start now. It also means homebuyers are coming out of hibernation early. We are seeing intermittent surges of pending homes and sellers are calling to start the listing process. It's only February but the local market is already heating up.
Are You Ready to Move?
An important reminder: when discussing the real estate market, it's not just about rates and values, its about whether sellers and buyers are needing to move and whether there is wiggle room to get around those rates and values. There is. Our market is moving.
It's never too early to start preparing.
Buying?
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Meet with your local loan expert and understand your buying power. Put together a to-do list for the financial half of the process.
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Chat with Team Clancy and put our experience to work for you. Find out what homes are on the market, what might be coming up soon, and start your must-haves and can-live-withouts lists.
Selling?
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Sit down with Team Clancy and find out the value of your home, get an idea of your equity, and create a to do list for house projects that will help get the highest price.
Buying a Home in a Traditional Market
The lack of competition on both sides of the for sale sign offers a slight relief for buyers, creating a little more wiggle room to shop. Although finding a home that fits your needs and budget can still be a challenge (some price points and ready-to-move-into homes are moving quickly) higher interest rates are keeping some home buyers browsing online making the competition a little lighter. With the right real estate team behind you, you can find value in our current homes for sale.
Buying a home in a seller's market can be a frustrating process if you aren't prepared. The market may be shifting to a more traditional style but you still have to be prepared. Here are some tips to get you ready to buy in today's fast-moving seller's market:
Price: Be Ready to Make a Strong Offer
Chances are, you will already have a price range in mind when you start your home/property search. In a normal market, you leave room for negotiation, your initial offer is often at the bottom of that range. However, in a seller's market, one can’t expect to go about it that way. Since you’re going to have a lot of competition, the price you initially offer may be your only shot at that property. In a seller's market, we tell our clients to be prepared NOT to get a 2nd opportunity to make an offer or negotiate. Make certain your offer is a strong contender, free of unnecessary contingencies as well as risk & uncertainties that will make the sellers uncomfortable. MAKE YOUR OFFER EASY TO SAY YES TO!
Pre-Approval
If you don't want to miss out on a property you love, make sure you are pre-approved for a loan BEFORE beginning your home search. Seller's will take you, and your offer, more seriously if you are pre-approved.
Contingencies
Most offers have 3 contingencies: loan approval, appraisal acceptance and satisfactory inspection results. These contingencies, if not fulfilled, allow a buyer to terminate a contract to purchase and retain all of their deposit money. There’s nothing worse for a seller than having their property tied up for a long period only to have things fall apart. Not having additional or high risk contingencies, minimizes the seller’s exposure and makes your offer look all that much better.
Also, ensure that your offer is NOT contingent on selling your current home. With buyer competition strong and multiple offer situations prevalent, sellers will likely choose to pass on your offer (even if it is higher than the others).
Bridge Loans Available
A bridge loan can help ease the transition from one home to another.
