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Interest rates hit an all time low

submitted by Kathleen Layton, Berkshire Hathaway Home Services/Fox Roach Realtors Newtown Office

That’s right, all time – as in never seen before.

EVER!

The impact of the coronavirus and the wackiness of Wall Street has prompted the Federal Reserve to cut the federal funds rate, which means that interest rates could fall below 3%, right as the spring market hits its stride.

It’s an incredible opportunity for Buyers who have yet to purchase a home, and for homeowners who are rushing to refinance.

Here’s the challenge though – the lack of inventory means that what is already competitive market, is going to get even more so.

If you’re a Seller, that could be good news.

If you’re a Buyer, not so much.

Regardless of your position, here’s one thing I know for sure – the competence and experience of your agent has never been more important.

If the home you’re selling is priced properly and in showing condition, you can expect to see multiple offers.

I recently listed a home in the high $400’s which had 35 showings in three days resulting in eight offers.

That’s right – EIGHT!

All had varying terms from Buyers with varying qualifications. Knowing how to evaluate the terms and vet the buyers was critical to determining which offer was actually best for my client and their family. Don’t leave the analysis of those nuances to a novice.

If the home you’re buying is priced properly and in good condition, you can expect to be competing against several other buyers.

Knowing how to draft your offer to ensure your best chance of success should also not be left to a novice.

Here the nuances are even more critical.

In the scenario above, the difference was in the details – several of the offers didn’t have a chance from the get-go.

Whether it was buyer stubbornness or agent ineptitude that led to the less desirable terms I can’t say for sure, but at the very least you should be informed of the best way to draft your offer – if you choose not to follow your agents advice, well, that’s on you.

Here’s the bottom line – regardless of which side you’re on, the real estate market is challenging.

If you’re considering selling your home, I can’t imagine a better time, so get off the fence and do it!

If you’re buying a home, suck it up and bring some patience along with you.

Either way, working with an experienced agent who knows the local market is critical to your success.