How does a buyer get an edge?

By Shawn Lackie

The Real Estate landscape has certainly changed in the last two years (yah think?). What used to be a crazy ride for buyers and sellers has almost died out completely. High interest rates and seller greed finally caught up with the market. Buyers who were once throwing money at sellers with no thought about it are now sitting back and patiently waiting for the next shoe to drop. Or at least interest rates.

We had one drop in September, and more are on the way. However, it will be a long wait if they are waiting for a return to the glory days of low interest rates in September of 2021, when you could get a 5-Year fixed mortgage for 1.44 percent. Although you can never say never, it’s highly unlikely we will see that low rate again, at least in our lifetime.

Sales will pick up again; they always do. The last extended downturn in the market lasted from 1989 to around 1997. A full decade of stalled sales and wary buyers. The banks were insane at that time too, cutting businesses that had lines of credit in huge numbers. One of the local companies had an LOC of a cool one million, which suddenly became 100,000. That’s pretty serious stuff.

The market rebounded. Real Estate is like a rubber ball bouncing from one scenario to the next. The trends we have witnessed in the last few years have certainly been a challenge. So, when we do get back to the matter at hand, what can a buyer do to have an edge over other buyers?

First things first, get pre-approved and get it in writing. If you don’t have a home to sell, all the better. If you do have to sell, get a qualified agent to give you a good idea of what you could get for your place. Then do the math.

If you take those steps, it will save a lot of grief in the long run. You can then figure out what you can spend. Next up, do a wants and needs list. That is critical. Too often, buyers spend crazy money on things they don’t really need. Do you really NEED 4 bathrooms? The extra bedroom, which sits empty? A man cave or she shed, which looks cool, but is it necessary? three-car garage? You get the drift. It’s amazing how you can figure out just what you actually need when you take the time to write it down. Why pay for what you don’t need? Do your homework for homes. Great area. Close to shopping, schools and more. Figure that out and take a guess at what this place might be worth in 5-10 years. Do your exit strategy before you buy something that might not have resale value. Keep track of all these things in a comprehensive file. Share your thoughts with your realtor and don’t be afraid to ask questions. As many as you need. You will be glad you did.

Feel free to check out this story and more on my blog site at: https://slackie14.wixsite.com/buy-sell-and-more.