True or False: What to Expect in this Housing Market
The real estate market continues to be hot! On today’s show, we play true or false to find out if these statements are an accurate reflection of the home buying process.
Today we play a little game of true or false. Does Angie agree with these statements or are they a common misconception?
Is it impossible to buy a home right now without overpaying? Angie says this might feel true, but consider your mindset as you try to buy a home in the Triangle. The rate of appreciation is continuing to rise, so by the time you get to the closing table your home’s value will likely have already gone up. Interest rates are also going up, so if you wait, you might be “overpaying” but in a different way. Unfortunately, buyers are chasing the market right now. It’s important to make a strong offer on a home you want, otherwise, it might be gone!
Don’t wait to buy, the Triangle market is simply becoming a more expensive area. You should plan to be in a bidding war given how competitive it is right now. But don’t let that scare you! One misconception is that down payments must be between five and 20 percent, but Angie shares a client example that worked otherwise. Will you be able to compete with a cash buyer? Of course! The amount of due diligence you can put down can make a huge difference.
Is curb appeal something that could make or break a sale? Angie says first impressions are key. Freshening up the landscaping and adding some flowers can go a long way. Don’t forget that your photos online are also the first impression for many buyers, so those need to look good, too.
If mortgage rates go up, is that really a big deal? Angie says this can really change your buying power and what you qualify for. Interest rates can be more significant than home price increases. Nationally, interest rates are low right now, but as they go up you could really see the impact.
Finally, does the Zillow home value estimate (or “Zestimate”) show the correct price? Angie says to remember that this does not always show updates or the condition of the home, making it not necessarily accurate. Be sure to reach out to a realtor to get a more accurate estimate of what your home could be worth in today’s market.
Listen to the entire episode or skip ahead to a particular question using the timestamps below.
0:53 - “It’s impossible to buy right now without overpaying.”
3:37 - “You’ll most likely be in a bidding war.”
4:03 - “Down payments must be between 5-20%.”
6:03 - “Curb appeal can make or break a sale.”
7:21 - “It’s not a big deal if mortgage rates go up 1%.”
8:50 - “You won’t be able to compete with cash buyers.”
10:35 - “Zillow home value estimates are typically correct.”
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