T
he real estate landscape is shifting, with a mix of positive and challenging trends for buyers. Historically low inventory has driven prices up, but the market is slowly rebalancing, giving buyers more time to consider their options and negotiate prices. According to Marco Santarelli, founder of Norada Real Estate Investments, homes are staying on the market slightly longer, allowing buyers to breathe a sigh of relief.
Despite this glimmer of hope, home prices continue to rise, albeit at a slower pace than in previous years. Experts recommend that buyers start their search as soon as possible, and for sellers, it's essential to be prepared for a potentially longer sales process.
Choosing the right real estate agent is crucial, says Michelle Kennon, who recently purchased her first home with her husband Daniel. "Find someone you like, and don't be afraid to shop around," she advises. Trust is critical in this relationship, so look for an agent who understands your needs and will support you throughout the process.
Ebony McKnight and her brother Armando sold their mother's home last year with the help of a skilled realtor, who made the process smoother and less overwhelming. "My expectation was to work with someone who understood my needs and could communicate effectively," Ebony says.
To find a good agent, get recommendations from friends and colleagues, research online, or drive through neighborhoods you like and look for agents on real estate signs. As Buffie Patterson, president of Columbus Realtors, suggests, "Interview me just like I interview you. We want to work together."
When selecting a lender, consider finding one who can help you set realistic goals and expectations. Brent Diebert, mortgage loan originator at Heartland Bank, recommends speaking with a lender early on to get an idea of what you qualify for before starting your home search.
In today's market, interest rates are higher than they were a few years ago, but there are ways to lower costs through institutional programs and government-backed initiatives. Home buyers can also reduce their interest rates by buying down points on the loan, but this comes with additional upfront fees.
One shift in some markets is the reduced use of appraisal gaps in sales negotiations. When an appraiser determines a home's value is lower than the agreed-upon price, the buyer may agree to pay the difference. However, experts recommend not waiving your right to renegotiate the contract if you encounter an appraisal gap.
Buyers' agents still receive commissions, but new rules require them to secure an agreement with their clients at the beginning of the process. This change aims to increase transparency and open up conversations about compensation rates.
For community association members, rising HOA fees are a growing concern. These charges typically cover insurance, utilities, landscaping, repairs, and maintenance, but inflation and skyrocketing insurance costs have led to significant increases in recent years. Homebuyers should factor these expenses into their budget when considering a property.
