1. First-time home buyers: Get that starter home now
Well, youâd best gyrate into action. And we mean now! More than half the house sales (52 percent) in 2017 are expected to be to first-time buyers, and mostly to the millennial set (19 to 34 years old). That means competition â and bidding wars â could become fierce within the spring for such
2. Sellers: Hire the right agent.
Oftentimes, the simplest investment a seller can make is time spent researching agents. First, look at an agentâsâ online marketing material and listings. Is there good photography or video? Does it âpopâ? Are descriptions accurate and complimentary without seeming exaggerated?
Then, check out profiles of the agents on LinkedIn, Facebook and other social media; and make certain to read web reviews. What quite vibe is an agent sending out?
Narrow your search to 3 agents and interview each, ideally face to face.
A seasoned listing agent also will know the simplest times for open houses and the way to initiate a price competition if the market allows. Never consent to an inventory contract of longer than 90 days during a sellerâs market. You can always extend.
3. Buyers: Thereâs more loan money out there
Those who couldnât get mortgages during the downturn because they didnât have 20 percent to place down can find affordable financing again.
One telling sign: About two-thirds of mortgage refinancing were getting approved in the fourth quarter of 2016 compared to just one-half of those at the end of 2014.The best rates attend those with 800-plus credit scores, though 750-users are becoming virtually an equivalent terms.
Unfortunately, those seductive interest-only loans also are on the menu again. Avoid them. Theyâre affordable initially since youâre not paying principal, on the other hand, years later, well ⌠see the good Recession of 2008.
4. Sellers: it's going to be a sellerâs market but âŚ
Home sellers can do several simple things to reinforce appearance, increase buyer interest and boost their homeâs profile:
Theyâre far more cost-effective.
Clean, clean and clean some more: Itâs hard for buyers to picture themselves living during a dirty house. Scrub floors, baths, kitchens, windows, and walls, and be sure to clean, vacuum, and deodorize rugs. This is simple but effective.
Depersonalize, declutter: Show the space, not the contents.
Illuminate: Think bright and cheery. Open drapes and add brighter light bulbs in dark areas. Repaint where needed but use neutral colors.
5. Renters: It might be time to buy
That, and therefore the incontrovertible fact that renters now account for 37 percent of households (the highest level in 50 years), seem to point an imminent coming-out party for renters-turned-buyers, especially if they decide to stay for five to 10 years after buying.
There are limitless buy-versus-rent calculators like Bankrateâs calculator for renters to match affordability. But no gauge accounts for human behavior, like the reluctance of renters to re-invest what theyâve saved from not paying land tax, insurance, upkeep, etc. Home buying basically enforces that discipline.
6. If youâre a buyer, donât believe the home is yours
Donât bank on a done deal or other verbal promises from listing agents until you sign a contract. In heated markets across the country, sales agents are giving buyers false hope and using their offers to bid up the worth for preferred buyers who they think pays more and close faster. Have other homes in mind.
For added clout, tell sellers youâre willing to âescalate,â or exceed all offers to a particular limit. Some agents even advise buyers to write down so-called âlove lettersâ to sellers, telling them what proportion the house will mean to their families.