Top 5 Takeaways Since the Fed Started Raising Rates
It’s now been over a year since the Fed started aggressively raising interest rates. We all know the market shifted practically overnight (finally we're seeing the dip reflecting what agents have been experiencing over the last year), and there are so many takeaways to share about how increased rates have changed both buying and selling power.
So, here are my top 5 takeaway.
- Turnkey properties in great locations will always sell for a premium no matter the market conditions. The biggest difference is that you will pay less for that premium property today than you will when the market is hot.
- Buyers put a much lower value on homes with issues that create uncertainty like unwarranted space (even if it lives like it could be legal), brick or partial brick foundations, unpermitted work, expansion potential, lack of parking, and wonky layouts.
- Comparable Sales (comps) are always historical and a low-ball offer is always better than no offer at all. So many properties have traded at surprisingly low prices, and it’s because somebody had the gumption to submit a low-ball offer on a property that very likely had issues. I like to call this "Throwing Spaghetti."
- Relationships matter! Even in this down market, where there may not be as much competition, there is still competition and your agent’s relationship within the agent community matters. Additionally, as a buyer, the relationship you create with the listing agent matters just as much. When that lowball offer is submitted, those warm and fuzzy relationships will get you that last call and then you, as the buyer, will be able to determine how you want to leverage your position.
- Sellers can still turn a profit on the sale of their home even in this cooled market. The trick to getting a great price for a property is knowing the right blend of pricing strategy and preparation thereby creating an emotional attachment from buyers that nets the seller the highest price and best terms from the market.
