The real estate market is ever-evolving according to buyers’ wants, sellers’ needs and the state of the economy. These influences can make selling or buying a home exceptionally complicated.
That’s why you need some insider information. When you’re shopping for a new home or getting ready to put your home on the market, remember the following real estate trends.
Less DIY, More Turn-Key
In the past, buyers were willing to see past outdated decor, worn carpet or a closed-in floor plan, eager to update a home to their preferences, according to Better Homes & Gardens writer Kit Selzer. Now, buyers are eager to keep their tool belts, construction team and design skills packed away. In the BHG’s first Home Buyer Study, 52 percent of the respondents said their ideal home purchase would be free of major renovations and repairs or be a new home build.
Skipping Past Starter-Homes
Traditionally, first-time homebuyers opted for a starter home, a dwelling they would outgrow in a few years once their families and/or incomes grew. According to the BHG study, millennials are jumping past the starter home stage.
“Typical starter-home buyers are now investing in higher-end homes, and 42 percent of millennials (those born between 1981 and 1996) surveyed wanted their first home to be their dream home,” reports Selzer.
Inspired to Entertain
A kitchen can make or break a sale. Buyers covet a well-designed kitchen with features like large islands and high-end appliances that make entertaining easy and attractive.
“The majority (66 percent) selected a state-of-the-art kitchen as their most desired luxury. Not even an outdoor pool or a theater room beat out the ideal kitchen,” according to Selzer.
Seller’s Market
Unfortunately, a healthy down payment, strong offer and a good credit score do not equal an easy sale. Even if you can find a house you want to buy, you will most likely be competing with other interested buyers.
“Although mortgage rates hover at historic lows, potential buyers are battling low housing inventory and higher prices, an issue that has plagued house-hunters in recent years and is showing no signs of letting up,” according to USA Today writer Jessica Menton.
According to Chelsea Levinson of Homelight, choosing a local loan officer can put you at a distinct advantage when it comes to bidding wars because they already have relationships with real estate professionals in the area and can offer more personalized attention.
Virtual Tours
Although not every real estate listing includes a 3D home tour yet, you are likely to see the option more often, according to NerdWallet writer Holden Lewis. The feature allows you to tour as many homes as you want from the comfort of your home. It is more interactive than clicking through a slideshow of photos and helps you whittle down your list, saving you a lot of legwork. Some 3D tours allow you to check out the neighborhood, too.
Whether you are in the market to buy or to sell a home, knowing these real estate trends can help make the process more transparent. As a seller, it might be time to focus on some home improvement projects, update appliances and use digital tools to highlight your listing to potential buyers. As a buyer, be cognizant of low inventory, prepare for a bidding war and be clear about what renovations you are willing to handle.
Mortgages at Minster Bank
If you’re in the process of buying a home, Minster Bank can be your go-to resource for mortgage financing. Check out our Mortgage Center to check rates, calculate potential monthly payments or apply for a mortgage. You can also learn more about our mortgage loan programs, such as the Welcome Home Program, which can provide up to $5,000 in grant money toward the purchase of a new home.
Learn More About the Welcome Home Program
Published by Minster Bank
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