The other day a client said to me that he’d know in a few weeks whether or not he was going to make an offer on the home he had his eye on. Further, he didn’t want to be involved in a bidding war, and he wanted to pay the asking price.
Until inventory increases, which it’s predicted to do as we move forward into 2015, not only are prime properties snapped up almost at once, but there is usually a bidding war and sales for reasonably priced homes are commonly well over the asking price.
It’s true that mortgages are at an all-time low right now, so that’s to the buyers advantage, but will they remain that way? Controlling inflation is now on the table for Janet Yellen, the Chair of the Federal Reserve. One of the ways that’s done is by increasing interest rates. If this policy is followed, as it’s rumoured to do, getting a home loan will become more expensive.
I know this might discourage a new buyer, but there are strategies you can follow that will give you an edge.
My advice? Start small. You might buy a home that’s a little less than you need, or in a neighborhood you hadn’t considered just to get yourself in the housing market. If all goes well, you’ll be in a good position sell for more than you paid when you’re ready to move up.
If you’re already a homeowner and ready to sell, this is a golden time for sellers. Please give me a call at 510-527-0174 , I’m never too busy to take care of you– or your referrals–and I’ll make you glad you called.
If you’re a BUYER go to That House Detective
Whatever your real estate need, I’m happy to help!
Coldwell Banker in Berkeley