If you don’t sell your home now, you may never be able to! We are in a housing bubble, but it’s not popping? Buyer’s interest rates are 10%+, did you hear? Sellers are panic accepting offers that are 20-50k below list price! If I had a dollar for every time I heard one of these statements, I could hang up my hat and retire with margin. In a media and panic driven society, how is it possible to decipher the truth in a sea of differing “facts” and opinions? Well, we have an opinion…and hopefully it is more helpful than harmful. 

We would like to touch base on every side of the spectrum as it relates to real estate. That includes sellers, buyers, investors, interest rates, and the future of the market. First up, sellers. What does it look like to sell your home in Fall 2022 into 2023? Pricing is huge. We are going to disclose our largest industry secret, and one of the primary reasons our listings continue to sell faster than competition. 


According to NAR, pending transactions are down 10% month over month, and 30% year over year. Those are large numbers! However, are we taking into account the record year 2021 was? Are we remembering the critically high amount of traffic in the market that drove demand through the roof? The key to serving a seller correctly now and always, is to price ahead of the market. If prices are trending upwards and comps support this, price ahead of the market in an upwards fashion. If prices are trending downwards (NOW), price ahead of the market in a downwards fashion. This is the only way your listing will stand out. Sure, there can be merit given to staging and proper home prep, but nothing brings a buyer like an attractive price tag. 


Buyers, is it time to hibernate for winter and appear next year renewed? That is entirely up to you, but there is opportunity to be had. Right now, interest rates are hovering 6-7%. Historically, this is on the moderately high side of average. At the expense of interest rates, sales prices are trending downward, with the NAR stats to prove it. In this market, buyers should be hounding listings and testing the market with lower offers where appropriate. 


Purchase within your means with the currents rates, then amplify your margin when rates come back down (CYCLICALLY). For those that have experience with this from 2019-2020 refinances, you understand how much of a game changer this is. Remember, sales prices are firm for a 30 year mortgage, interest rates are subjective. What holds more value to you? Sales price or interest rate?


Long term investors (not flippers) or buyers with a large % down, this market should REALLY excite you. If your anticipated rent, AirBNB income, or other passive income tracker puts you in the positive, then pair the cosmetically distressed listing that catches your eye/budget and grow your portfolio. Your monthly income will substantially increase when rates downtick, as anticipated in late 2023. 


None of us REALLY know the next steps for the market. One thing that we do know is that someone will always be moving and/or selling real estate. We know that real estate is a hedge against inflation and protection in a recession. Regardless of climate, someone will always be postured to benefit/capitalize on a real estate transaction. We want to boldly communicate that we know how to serve each of these demographics well. We are always available to clarify points and serve the families of the Greater Richmond Area.

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