By Lance Fleming
Labor Day weekend. The last “hurrah” of summer. The bar-b-q flames have cooled. The family vacations are posted and “liked” on social media. Hoodies and jackets are replacing tank tops and sun dresses. Even with a few weeks left of summer, the shift to cooler weather is everywhere. This is no different for real estate. Historically, we see the number of new listings drops. Buyers often pack it in and wait until spring and summer. The number of homes sold slows down as the market goes into semi-hibernation.
So what can people planning on moving next year do now, to get themselves ready for next spring? A lot, actually. Here are some tips for buyers, who are ready to hunker in through the colder months. Starting with future buyers. The number one thing that is slowing down buyers is finances and affordability. With the dramatic home price hike from post-COVID freedom, immediately followed by the record-setting interest rate increase in 2022, buyer fatigue shifted to buyer whiplash. The homes they had been fighting to get, they could no longer afford. And most decided their current living situation was better than the homes in their new price range. Three years later, what can a buyer do?
First, if planning to finance a home, talk to a reputable lender. Find out what loan types are out there (FHA, VA, USDA, CHFA, etc) and see what is the best option for your situation. In that process, a lender will also probably pull a detailed credit report. This is a big deal. There may be things you didn’t know that you can do to help your credit score. And some of those things take about six months. If repaired, buyers can be ready by next March or April and now have the ammunition to put in a rock solid offer on a home they love. Second, budget accordingly. There are many costs that buyers (especially first-time homebuyers) aren’t expecting when they are ready to buy a home. Earnest money, home inspection, potential septic or structural inspection, moving costs, down payment… should I go on? Some of these can cost a lot, others are pretty affordable, but they do add up. And when buying a home, it’s good to have a buying-a-home pool to dip into.
And finally, keep looking. Find what’s going to work for you. Looking through homes that are on the market will help you to know what you do and what you don’t want, when it comes time to buy. There will be some “hard no” items that you see. And some “I gotta have that” criteria when the day comes that a buyer is ready to make a change. These steps are a good starting point. So just like the squirrels who are stashing their food now, for later, it’s best for buyers to start preparing for spring, this fall.
