New Year, New Market?
As we discussed last month, we shouldn’t expect any drastic changes in the real estate market in 2025. Inventory will likely remain lower, and demand may increase as we hope to see some softening of mortgage rates throughout the year. Now that the holidays are over and 2024 is in the rearview mirror, it’s time to shift our focus and prepare for one of the most active seasons in real estate—the spring.
As you may already know, spring typically brings more competition as eager buyers and sellers enter the market. If making a move is one of your New Year’s resolutions, regardless of which side of the transaction you’re on, now is the time to start preparing to increase your chances of success. For buyers, what steps can you take right now to ensure you’ll have a competitive, winning offer? And for sellers, how can you prepare your home to maximize your net in the spring?
Buyers
While affordability remains by far the biggest challenge for buyers, purchasing your next home is still very attainable—especially if you’re well prepared. Here are some of the most valuable actions you can take to help you succeed.
Get Pre-Approved
Knowing exactly how much you can afford is one of the most important factors when buying a home. Once you have a realistic idea of your budget, it helps inform other key decisions like which neighborhoods you’d want to live in and what type of home you want to buy. Not to mention, sellers likely won’t even consider your offer unless it’s backed by that guarantee from your lender. Start the process sooner rather than later so you have complete clarity on what you can actually afford before the market heats up.
Refine Your Wants & Needs
Buying a new home can be a very exciting process, but it’s crucial to be realistic about your wants and needs—especially within the confines of your budget. One way to help refine that list is by taking a “whats” and “whys” approach. On a sheet of paper, list all of your wants and needs in one column—these will be your “whats.” In a second column, go down the list and note your “whys” for each “what.” For example, let’s say the “what” is a rooftop patio, but you may realize that the “why” is actually to have some outdoor space, which obviously expands your housing options.
Be Familiar With Creative Offers
Start having conversations with your Realtor about the various ways to structure your offer, as these could differ quite a bit depending on the situation. If you’re competing against other buyers, you’ll need to understand how to make your offer more attractive to the seller—whether that’s more earnest money, a quicker timeline to close, or even a full-cash offer with 8z Cash Buy. On the flip side, if you’re facing no competition and/or a motivated seller, you should have an idea of what’s most important or helpful to you—like a lower purchase price or seller concessions to cover a rate buydown or closing costs.
Sellers
Buyers aren’t the only ones facing competition in the spring. Sellers also have to compete against an increased number of listings to gain attention from buyers, all while trying to maximize their net profit. Here are some ways to stand out from other sellers:
Have a Clear Pricing Strategy
This is the most important aspect when selling your home, and also one of the more challenging ones. If you’ve lived in your home for many years or have made significant improvements, it’s understandable to feel a sense of pride or sentimental value in your property. However, this can lead to unrealistic expectations regarding your pricing strategy. The bottom line is: your home is worth whatever the market is willing to pay. This is where an experienced Realtor is crucial—someone who can remove the emotion from the situation and help you establish a realistic pricing strategy based on real market data.
Renovations & Updates
Depending on the comparable listings in your area, some home upgrades will yield a higher return on investment than others. Unless there are any major issues with your home that need to be addressed, affordable updates can go a long way. Fresh paint, new carpet, updated hardware, and light fixtures can drastically change the look and feel of your interior. You can also increase your curb appeal with new mulch, changing the color of your front door, or installing some affordable landscaping. Your Realtor can help guide you on which updates will yield the best ROI in your area.
Merchandising
Here’s another area where your Realtor can be crucial—the overall marketing strategy when selling your home. Beyond professional photography and a sign in your yard, there are numerous other tactics you can utilize to maximize your home’s exposure to buyers. Your Realtor can employ email, social media, and other digital marketing strategies to raise awareness among buyers and real estate agents alike.
Again, if you’re thinking about making a move this spring, now is the time to start preparing for success. Whether you’re buying or selling, start having conversations with your Realtor and lender so you’re ready when the time comes.
