Conversations Realtors Are Having With Clients

Are you looking to venture into the real estate market as a future buyer or seller? Hesitant on if you are ready to buy or sell, or if now is the right time? In today's busy market, enlisting the help of real estate professionals can help navigate the process and ensure you have someone by your side to inform, persuade and give you peace of mind.   

Many factors, such as rising interest rates, are causing some confusion for buyers and sellers on whether or not to enter the real estate market. With the help of a seasoned agent, you can feel confident you are receiving the best advice and are able to make the right decision for your situation. 

Here are four conversations real estate agents are having with their clients to ensure they're ready for the next step. 

1. Addressing Interest Rates and Affordability 

Is a new or second home in your budget, and are you aware of the current market interest rates? When thinking about purchasing or investing in a new property, your real estate agent needs to be mindful of where you stand in the market and ensure you are setting yourself up for success. 

Rising rates affect both the buyer and the seller, so finding the right mortgage depends on receiving the right advice. With the right direction, buyers and sellers will feel more knowledgeable, confident, and secure with their financial decisions.   

Agents may suggest using a Cost of Waiting analysis tool to measure the amount of equity a buyer would accumulate if they were to purchase a property now compared to how much they may lose by waiting to buy. When moving forward, it is also essential to be aware of the available inventory and current home values.  

2. Will Housing Prices Go Down?  

Rising housing prices have been the trend for the past few years and have resulted from many factors, including low inventory, an uptick in interest rates, and economic change. The best way to stay in touch with housing prices is to study the data and be aware of any changes that could result in the fluctuation of home prices.  

While the reasons that home prices fluctuate can be complex, the benefit of knowing them is simple. You can buy or sell a home more efficiently for the best price possible by identifying the factors. Understanding these influences will help to ensure you price your home accurately and prevent it from sitting on the market for too long. 

When talking with your REALTOR®, it is vital to have this conversation to know that you are both aware of the urgency to buy or sell a home. Be sure to communicate the wants and needs in your life so you can best address if purchasing a home is crucial or if there is time to wait and adjust priorities. 

3. Is Now a Good Time to List? 

From a seller's standpoint, you may ask yourself if now is the right time to put your home on the market. Again, having open and honest communication with your REALTOR® will help you understand how interest rates will affect you, how the prices of the homes around you will affect you, and what to expect once your home is on the market. 

There are three choices when looking to sell: list your home, hold off, or stay in your home for the foreseeable future. When coming to that decision, the choice will depend on your reason for moving and the state of the market. Selling your home can be a big decision in your life, so if you don't feel prepared, the open line of communication with your REALTOR® will help you make that final decision. 

Ask your realtor to work through a Move Up Comparison to determine if listing your home is wise and feasible. This comparison will help sellers understand whether they should or should not upgrade to a new home and if they can do that in a way that leaves them financially secure.

4. Is Now The Time to Buy a Second Home? 

The purchase of second homes increased significantly in mid-2020. According to CoreLogic, the increase grew as many people took advantage of remote work and low mortgage interest rates to seek other locations and invest in vacation destinations. 

When chatting with your REALTOR®, you'll discuss the pros and cons of acquiring a second property and topics such as what you will do with it while you are away. Second homes can be an excellent investment and source of income if you are looking to rent them out. Renting the property can be a great solution to offsetting your mortgage payments and any secondary costs that come with a second home. Discussing rental history and comparison properties with your REALTOR® will help you make an educated decision. 

It is important to discuss if you can take on the additional financial responsibilities that come with a second home, such as a large down payment, higher second home mortgages, and higher interest rates. But there is an added advantage; the property will naturally increase as time passes, eventually paying for itself.  

Taking the Next Step 

Are you ready to have these important conversations with your REALTOR®? Taking these steps will not only prepare you with the knowledge you need moving forward but also prepare you to feel confident with the decision. 

Here at Emerald Isle Realty, our staff of experienced, five-star service REALTORS® can guide you through any and all questions regarding buying or selling a home. Give us at (800) 304-4060 for assistance in the buying/selling process.