How’s the Real Estate Market?
As real estate professionals we get asked almost daily “How’s the real estate market?” and we are happy to share anytime… because let’s be real! We love talking about real estate and sharing our knowledge with anyone who asks.
Having been in the real estate industry for over 20 years, we have seen the good, the bad, and the ugly. We remember when sellers were so beat up during the crash and buyers were enjoying great opportunities to purchase with little to no competition. Multiple offers were practically unheard of. In fact, buyers would at times make multiple offers on several different homes and reserve the right to accept the highest and best “Seller’s” Counter Offer! Totally opposite of what we saw in, what we call, the Covid Crazy. See, the market is always good for someone and it shifts back and forth between buyers and sellers. The best is when the market is balanced and all are on an even playing field, but unfortunately that is not usually the case.
It is always a good time to invest in real estate.Homeownership is the American dream and in our opinion, there is no better way to build financial wealth than through real estate. In recent years during the Covid Crazy, we have seen a huge increase in equity at lightening speed. Buyers threw all they had at it and still came up lacking. The lucky buyers won the bid and got the privilege of being the next home owners. But what now? Prices have gone down a bit from the peak. If you purchased just before the shift, you may have even paid a little more than it is currently worth. Just remember, real estate is meant to be an investment that increases over time. The idea is you buy, hold, and eventually sell. It is not meant to purchase and turn around and sell months later with a $50,000 gain unless of course, you are flipping it and have made significant repairs. Commonly your investment will dip and then, over time, regain and grow.
Loan officer Patrick Lesire with HomeBridge Mortgage states, “8 out of the last 10 recessions real estate still increased in value.”
What happened to your equity this year?
Investing in real estate can be a hedge against inflation and good for building financial wealth. When everything else is going up, food, gas, rent… your mortgage stays the same. The rent cap for 2023 is 14.6%. That means your rent has the potential to go up by that amount in 2023. As inflation goes up the % landlords are able to increase rent also goes up. With a fixed rate mortgage your principal and interest payment never changes so you avoid the cost of inflation by owning your own home.
Local estate planning and elder law attorney, Jennifer Smith with Sherman Sherman Johnnie & Hoyt, LLP states, “ As an estate planning attorney, I commonly see that clients with the highest net worth have invested in real estate. However, everyone’s financial situation is different, and I always recommend consulting with a financial advisor before making any investments.”
As a homeowner, you have some control over how your investment grows. It is important to remember that maintaining your home helps protect your investment. Keeping it updated, free of differed maintenance and smells, and nicely landscaped matters. Not doing those things effects how much you can sell your home for when the time comes. Buyer’s don’t easily look beyond the honey-do-list. Some won’t even consider your home if it needs interior painting. Yesterdays colors or a color pallet that is too taste specific will turn buyers off.
As real estate professionals our job is to help you obtain the highest and best value for your home. We often do walk throughs prior to a home going on the market and make recommendations on what you can do to make your house show its best. But why wait until you are ready to sell and time is short? We recommend you regularly do your own walk through, or better yet, hire a home inspector to do a full home inspection. It is a great way to find out all you need to know about your home. Of course, if you are considering selling, contact us. We know what to look for and what will likely make the biggest impact, so that you can obtain the best value for your home or property.
Have pets? Don’t let the pet smells take over. Buyer’s are turned off by strong pet smells and it will effect the value of your home. You smoke? Don’t smoke indoors or near an open window. Homes with smoke damage take a huge hit to their value.
You paid good money for your home so don’t let some of the value slip away due to a lack of maintenance and updating. Curious what your equity currently is? We have an instant home equity report waiting for you!
At BST Realty LLC, we are here to help you achieve your homeownership and investment goals. Feel free to contact us anytime for a market update, recommendations on preparing your home for sale, or just to say hi! We love our clients and community and are here when you need us.