With the beginning of the year and all new challenges these are a few tips to look at or prepare for when entering or exiting the Real Estate Market in 2023.
----Sellers----
Price and Terms!
Understand that the game of Real Estate is like the tide and has been up for the past few years. Buyers have been on the receiving end of heartbreak with multiple offers, being outbid and having to settle for what's left over. Cash is and always will be king but for the last few years it seemed like everyone had more than the next guy.
With all of this in mind, be flexible with your property. Understand that the price you start off at will be the first and most important thing as it always has but right behind it will be your flexibility with terms. It has become an increasingly common request to give credit to the buyer. This can be in the form of a price reduction but recently the credits are typically used to buy down the interest rate, pay off closing costs or somehow help the buyer feel like they are getting a great home at a fair price.
Being prepared for this can help alleviate that feeling of being lowballed or taken advantage of. Take this into account with your price. Understand that this is the market and price it accordingly. This is where the relationship you have with your agent and lender helps you understand what a potential buyer may be coming to the table with.
-----Buyers-----
Price and Terms!
Do you see any similarities yet? Yup exactly. As a buyer the tide has definitely started to creep back into the realm of optimism and normalcy...whatever that is anymore. With all the above conditions and purchase power now in your favor, be realistic. Yes the tide is turning but the world is not on fire and if it was would you want to jump into that? Your initial offer should have some basis for what the market and inventory in your area dictate.
I have a listing coming up down in the bay area later this month and was surprised to find out that market on the Peninsula and Rocklin are very similar. People are still moving here and buying here. The buyers are just able to be more picky and negotiate some better terms than in past years/ months.
A few tips I give my clients are to look for properties that have been on the market for a few weeks or more if we are going to come in with an aggressive offer or term that may not be typically received well. Understand what the seller is thinking to the best of our abilities with their price and listing. How long have they owned it, what have they done to it in their time of ownership, and more importantly what do they owe on it? These can save everyone a lot of time and frustration on both parts.
Coming Soon!! Stay tuned for my next listing down in Foster City. 4 Bed 3 Bath next to the park.... Happy New Year!
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