Plan for the Spring Real Estate Market

Plan for the Spring Real Estate Market

The last couple of years have been record-setting ones for real estate all over North America. Record-high demand, record-low inventory and record-high home prices have driven the industry to new heights. Now, buyers and sellers are thinking ahead to the possibilities offered by this spring’s real estate market.

Whether you’re buying, selling, or both, it’s time to start thinking ahead so that you’ll be prepared for the next few months.

Plan for your spring real estate purchase

If you’re planning to buy a home this spring, you probably know you’ll be facing some stiff competition. Many markets have been experiencing tight inventory, creating increased competition for the best listings. The best way to prepare? Close collaboration with your trusted real estate agent or broker and a game plan that takes in all the eventualities.

Connect with your lender early

Well before you begin your home search, you need to begin working with a lender. Find out what it will take to get preapproved for a mortgage and what type of credit rating you’ll need. Start paying down debt and gathering the documents to verify your income and employment. Get a handle on your potential home-buying budget so that you can begin developing a strategy to find the right home in the right neighborhood.

Compare products and interest rates

One of the things that drove the real estate market throughout the pandemic was record-low interest rates on home mortgages. As those interest rates begin to rise, you’ll need to work with your lender to compare your various options. Different types of loans and different loan terms can make a difference in the interest rate you’ll pay, so it’s well worth crunching the numbers.

Ask about grants and incentives

You may be surprised to learn that there are homebuyer incentives available in markets all over the country. Some pay for your down payment, while some contribute to closing costs. Some are geared toward first-time homebuyers while others are available when you purchase a home in a specific geographic area. Find a great deal and let it help guide you as you begin your search.

Have a Plan B

In a tight market, it’s vital to have a backup plan—and a backup plan for your backup plan. Here are some ways to give yourself additional options.

• Try not to get locked into a specific neighborhood; have two or three options to choose from.

• As you begin to narrow your home search, whittle it down to several options rather than setting your heart on just one.

• Be open to the idea of a fixer-upper or consider a different type of home layout that can be adapted to your needs.

The more open-minded you are during your home search, the better your chances are of making a good decision and getting a good deal.

Plan for your spring real estate sale

If you’re one of the lucky homeowners planning to take advantage of the opportunities offered by this year’s real estate market, you’ll want to optimize that potential. It starts with the decisions you make upfront and the way you prepare for marketing your listing. Here’s how to ensure you’re ready for the days ahead.

Explore value-added upgrades

In a strong market, you may be tempted to save money by leaving updates and upgrades undone, assuming that demand will still be strong for your listing. However, that’s just leaving money on the table, especially right now. Work with your agent to determine what changes will attract buyers and increase your home’s value, and then have them completed before you list.

Discuss virtual tours and video

Talk to your agent about the possibilities for virtual open houses and home tours. Talk about how great photography and video tours can make your listing pop online so that it gets maximum exposure. Determine what type of showing schedule will work best for you and your family.

Prepack and declutter

Whether showings are in-person or virtual, clutter is always unattractive to potential buyers. Here are some ways to optimize the look of your space and prepare yourself for your upcoming move.

• Clean out your closets, cabinets, basement, attic, and garage, disposing of things you don’t want in order to make your home’s storage look larger and more appealing.

• Start the packing process early by putting away family photos and other personal items. Depersonalizing allows homebuyers to picture themselves in the home.

• Clear off countertops and bookshelves to create a cleaner, more streamlined look throughout your home.

• If you have oversized furniture, consider removing one piece from each room and putting it in storage until it’s time to move.

• Pare down collections of knickknacks and tchotchkes. Though they may bring you pleasure, they will read as clutter to potential buyers.

Plan for your post-sale move

Tight inventory may mean that it takes you longer to find a home to purchase on the other side of your sale. Begin your search early and talk with your agent about your options for a rent-back if your home sells before your purchase closes. Talk to your lender about financing options in case you find your new home before your sale closes.