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Buyers Beware!

Wednesday, December 20, 2017   /   by Nick Miskin

Buyers Beware!

I know, statistics can be boring.  True; yet when looked at from the right perspective, they tell us a lot about how things are and what may occur in the future.

At the risk of being boring, here are a few statistics with a bit of explanation about how they may affect you if you are planning on buying or selling a home in the next 3 to 12 months.

  • Statistic 1: The Federal Reserve, the bureaucracy that manages the nation’s money supply and interest rates, is planning on continuing to raise interest rates next year.  When they do, interest rates on home purchases will likely also rise.  On a $200,000 home mortgage, for every ¼ of a point interest rates rise, you pay $41.66 per month more in interest.  A 1% rise in interest rates on that same loan could mean you can’t qualify for that $200,000 loan, but only a $180,000 loan.  Higher interest rates can mean you must purchase a less costly home.

  • Statistic 2: In our local Metro Atlanta residential real estate market there is a very strong demand for homes in the lower cost, first-time buyer or re-entry buyer group, with low inventory (fewer homes for sale in that price category.)  That means much more competition and multiple offers driving up price and buyer frustration.  The trick is to find a real estate Team that doesn’t just show you homes that are listed for sale, but homes that are not listed – off market properties, For Sale By Owner Properties, builder close-outs and estate sale properties.  You need to find an agent with a Team that will do the extra work but when you do, it will have far better results for you.

  • Statistic 3: If you are in the mid-range pricing for a home, usually folks who are moving from a small home to a larger home and also have a home to sell, there are and may likely be more homes for sale now and in the next 3 – 12 months so your home purchase will, as a buyer, have some price negotiating power. And as a seller in the lower priced market, you have the price negotiating leverage.  There is and will likely be a shortage of good homes at lower prices so you will have the advantage of selling high and buying at market value.

  • Statistic 4: If you are a buyer in what is called the “luxury market,” you as the Buyer will have the negotiating leverage.  There are more homes for sale than buyers, so it has remained a buyers’ market. Again, if you are selling a smaller home to move up to a larger home in the luxury market (homes over $500,000) you will have leverage when selling and leverage when buying.

Whether you are a move-up buyer in the mid-range or luxury market with a home to sell so you can move up to that new home, be sure to find an agent with a Team that can not only show you homes, but provide you with a well-crafted plan to get your current home sold for top market value in the shortest time-frame and with the least hassle for you.

Statistics can be boring – but from the right perspective they can be really helpful.

For a FREE Special Report: How To Save Thousands When Buying Your Next Home go to: www.AtlAreaHomesInfo.com or call 770-672-7832 and ask for your free special report.