Is Now the Right Time??
We hear it time and time again in this market - “I want to maximize on the equity in my home, but how do I sell without getting stuck without a place to go, or not being able to pay these high prices when I buy?” We have outlined some possible solutions that have been helpful for our clients; combining these with knowledgeable agents who understand this fast paced market and the negotiation strategies needed to succeed, you don’t have to feel stuck!
1. Discuss timing with your real estate professional (give us a call!).
While home prices are expected to cool slightly, they are still forecasted to rise about 3.6% in Georgia in 2022 (national figures are trending anywhere between 2.9% to 5.7% based on the market). And experts predict mortgage rates will slowly rise in 2022 from the historic lows we have seen, with many foreseeing 3.5%-3.75% by the end of the year. Pierre Debbas, NYC real estate law firm managing partner, says “there may be a slight correction in pricing, but if anyone is expecting pricing to come down significantly, they’re going to be in for a rude awakening”. Timing your sale/purchase where you are still able to sell for top dollar, yet purchase before prices and mortgage rates continue to rise, may be a wise option.
2. Planning ahead can help ensure a smoother transaction.
Discussing your options for between closings with your real estate professional and family/friends prior to listing can help manage expectations on all sides. We are often able to work out convenient scenarios for our clients, such as rent back situations. This is where you close on your home, so you have the funds to purchase your next one, but you rent it back from the new owner for a designated amount of time while you close/move in to the next one. Not all listings/markets will result in these conditions however. If necessary, is there a family member or friend you could stay with before closing on your new home? Is a short term rental a possibility for your budget? Planning ahead will go a long way towards a headache free move!
3. Explore home purchase programs.
If you are looking for an option to bypass the scenarios listed above, we can assist you in looking at home purchase programs such as Homeward. These are companies that will purchase your next home for you, and you rent it back from them (with the rent accrued and paid back at closing so you aren’t paying while you still have the mortgage on your current home); you go ahead and move in while your current home is for sale. Once it sells, you take that equity and purchase your new home back from the program.
If you are weighing your options when it comes to selling or buying, let’s discuss whether now may be the right time! Give us a call at 678-749-9889!