I have been talking for quite sometime about the market changing, and the need for a correction in Colorado. Home prices have soared over the last couple of years, However Salaries have not had the same gains.
The reason for the steady increase in prices had a lot to do with supply and demand. Sellers were experiencing capital gains, sometimes $100K+ from when they purchased. It is still the best investment you can make in my opinion! If you are looking to sell there is still a short window to maximize your gains. If your buying, interest rates are still very low, but you really need guidance on selecting a home that will hold steady.
Ultimately Real Estate decisions are made by the buyer and the seller, but having experience and guidance from a licensed Realtor™ can make all the difference in the world.
Everyone has different motivating factors for selling and purchasing. Sometimes it’s a necessity, sometimes it’s merely a want for something new, bigger, better etc.
Buyers look at properties and imagine their life in their new home, I look at those same properties and point out what makes it a good buy in terms of resale. If you buy in a sellers market (which has been the case, in the last few years) you still need to be selective. Sometimes that takes patience , sometimes it means you have to wait for the market to become more balanced. Personally I look forward to this correction, but it will be a process for all parties.
Sellers will have to compromise a little more than they have been. They need to ask the tough question. “What would YOU pay for your home today?” If they’re honest it’s not always what they are asking the buyer to pay! They also might have to put more effort into getting their home ready for the market. Painting, cleaning/replacing carpet, and thoroughly cleaning the home. They also need to understand it may take more than a week or two to sell their home. If the home is priced right, and in good condition, it WILL sell!
Buyers also need to ask themselves, what are they comfortable paying each month? It may be far less than what the bank is willing to lend them. Just because you can purchase higher, doesn’t always mean you should. It’s hard to believe but so many variables are still not considered when determining a debt to income ratio. Things like groceries, gas, and other spending habits.
I tell buyers, save the difference between what you are paying today for housing, and what your new house payment will be. See what that feels like first, before you make the leap. If your unable to save the difference you have your answer. If you can save that comfortably, you also have your answer, and a few extra dollars saved!
In closing, this is just one Brokers opinion, none of us have a crystal ball that predicts the future. I am obviously not a professional writer, I am however a professional Realtor ™ , one who is happy to share my opinion ,and help to anyone who may need my service.
Sincerely,
Lori Walter
