Melanistic Magazine - Vol. 11

REAL ESTATE 101: Market Adjustments

By: Errol Scott

As you may know the market has changed - we had a surge of high prices and low interest rates creating conditions for multiple offers on properties. This is changing drastically; we are now experiencing high interest rates, and while prices remain high, there is a greater opportunity for negotiations. There are fewer multiple offers and a buyer should be aware that in this transition, not every seller has adjusted to the shifting market. Buyers have more time to shop and make careful decisions; more time to negotiate for your wish list or on pricing.

Your agent can compile a list of homes based on your needs and wants; filter your ‘must haves’ followed by your ‘would be nice’ lists. This gives you a baseline as you walk through each home; a checklist that ensures that you are bargaining for what matters most to you and your family. My suggestion is to keep these searches to no more than five properties at a time so that you do not become overwhelmed or confused by all of the options.

It is critical in a shifting market that your agent presents you with comparables that are recent so that your bid is aligned with the market vs the potentially misguided expectations of a seller. For example, a seller may have a home listed at $525.000 but in the current conditions, the comparable reflects that the home is worth only $485.000. When you present an offer that is on par with the market, a seller may be offended as their listing price has not adjusted to the new market. Your agent must be in tune with the fluid market conditions and be prepared to take these informed negotiations to the seller’s agent to ensure that you score the home of your dreams at a price that fits your budget.

For more info reach out to me @hardbodyrealtor on Instagram.