Over the past two years, the real estate market in the Triangle moved at a fast pace. Over the course of the past two years, the market has experienced major shifts in median sales. Inventory has been low. Due diligence costs have increased significantly. It’s a lot to consider when buying or selling a home.
Fortunately, the market is starting to normalize across Raleigh-Durham. That means buyers are starting to gain leverage in the market once again. You may be wondering what that means if you’re considering a move. Don’t let misinformation confuse you as you work toward buying or selling. The following 5 myths may cost you time and money. Here’s what you need to know before you make an investment you’ll regret.
Myth 1: Wait to buy until the market cools.
The market may be slowing down in other markets. That’s not necessarily the case in the Triangle, however. The market across the greater Raleigh-Durham area will remain competitive and will likely remain so for years to come, despite normalization.
What’s driving the Triangle market? The major tech firms coming to the area as well as the opportunity to work from home have increased the need for housing. Even without the pandemic, people have been flocking to the Triangle and will continue to do so. The area is expected to grow by another quarter of a million people within the next 10 years, and those people will all need housing.
The shift in the market means you’ll have more power as a buyer than you did the past two years, but it might still take some work. If you haven’t yet purchased and want to wait until the market slows even more, you may be making a mistake that could cost you in equity down the road.
Myth 2: Upgrading your home will help it sell faster.
Homes are still selling quickly across the Triangle. According to the Triangle MLS, the average home only stayed on the market 9 days in June of 2022. If you’re considering making upgrades, it might be smarter to consider staging your home for a sale instead. Bringing in a professional to stage your home may be significantly more affordable.
Upgrades may vary in costs. According to one survey, the average spent on upgrades is $15,000 but could trend up toward $200,000. Typically, you should only invest a small percentage of money based upon your home’s value. And unless you’re completely renovating a kitchen or fixing structural updates, an analysis from the National Association of Realtors shows it may not be worth it to make certain updates.
Talk to a trusted Realtor to determine what makes the most sense for your home. It may be beneficial to paint, add in new carpet, or make superficial repairs. And while a new, modern kitchen may help increase your home’s value, if other homes in your neighborhood aren’t selling for the cost of the increase, you may end up losing money in the end. Your Realtor can help you make an educated choice.
Myth 3: You don’t need a real estate agent.
Realtors are professionals who offer a wealth of undeniable benefits. They know the lingo inside and out and can help reduce the stress involved with the process of buying or selling. They have connections both inside and outside of real estate, which means they have a pulse on the types of homes that might be selling before they are officially listed. They have marketing resources to pull from. They also know how to negotiate, which means they can steer you away from the ones that can backfire.
It’s certainly possible to not use a professional real estate agent, but those reasons are very specific. It makes more sense to trust the expertise of an experienced agent who understands the ins and outs of the Triangle market. That’s even more important when the market is hot and you have to figure out how to navigate it. Never go at it alone.
Myth 4: You know what it takes to price your home.
You may have an idea of what your home is worth. You may even know what you’ve invested into your home to make it more appealing on the market. But those details don’t always translate to what your home is truly worth in the market.
Pricing a home is a balance that is driven by the current market and knowing what is considered too high and too low. It also takes a deep understanding of other comparative data that can help your agent settle on a competitive price. The price should be set at a place where it creates significant interest without asking too much. Your agent has the insights and knowledge to list your home appropriately so that you’ll sell it as quickly and easily as possible.
Myth 5: I don’t have enough savings for a home.
One of the biggest misconceptions in today’s market is that you have to have a stash of savings before you can buy a home. Fortunately, there are a number of programs and other potential incentives that can help you make buying a home reality. VA loans require zero down. FHA loans can allow for smaller down payments. And adjustable rate mortgages may give you buying power by providing you with a lower rate at the start of your mortgage. It’s important to know there are options available to you. You may even be able to use a builder’s incentive program to get cash toward a down payment.
Start talking to a trusted mortgage lender to see what options are available to you. You may just be surprised by what you find.
Consider your options
If you’re ready to move past the myths and find your new place in the Triangle, get in touch. Our team is the best in the region, and we are ready to work for you.
The Jim Allen Group provides access to information on this blog/website as a public service for educational purposes only. Although reasonable efforts have been made to ensure that all of the information made available is current, accurate, and complete…[read more]