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Friday, December 01, 2017

2018 is Coming But Is Waiting to Sell Your Home a Gamble? Is Waiting to Buy a Gamble?

Humans by nature can see the same thing and interpret it completely different.  Think about the times eyewitness testimony has been dis-proven.   The same can be said about the real estate market.

Seller often see their homes as being much more valuable than the listed price while buyers view the same house as worth much less than the list price. 

When it comes to real estate there are three truths:
  • Sellers look for reasons to get more for their house while buyers look for reasons to pay less for a house.  
  • The current real estate market sets the real value for today - not next year. 
  • Housing values and interest rates for next year are an unknown.
So as 2017 nears an end the question becomes should a buyer make the move now or see what happens?   Inventory relief is the phrase I read this morning.   The article I just reviewed said 2018 will see prices level off and begin to favor buyers.

If one is a buyer then this sounds positive because recent tight inventories have caused some buyers to panic.  With the strong competition in the current market some buyers have been swayed to loosen their contract offers by relaxing are some inspection clauses and contingencies.  In some areas/neighborhood buyers have even made offers on properties they have not yet viewed.

In some markets the competitiveness of buyers has caused sellers to set unrealistic prices in hopes of negotiating downward a bit but still selling for a windfall.  While this strategy sounds good it could back fire as a house sits on the market. 

If one is a seller then inventory relief should send a signal that selling may become more challenging in 2018.  To motivated sellers I say set a decent price now and don't let the market catch you sitting and hoping!

As for buyers I say let your circumstances guide your decision making.  DO not get caught up in the frenzy or emotions of the moment. 

The great unknown is the cost of money.  Interest rate increases have a far greater long term impact on a home purchase than a small increase in home price.

So what should a prospective buyer or seller do as 2017 ends?

Trust yourself.  Seek the guidance of a mortgage expert or local real estate expert.  Consider their advice but trust yourself.  You know your circumstances.  You know your goals. 

Only you understand your risk tolerance. 

If you are considering selling your Viera, Florida home, lets talk.  Buyers shopping for their new Viera home in December are serious buyers!  Call me at 321-693-3850.


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