Whether you’re still preparing for the big purchase or biding your time for the perfect market, you’re likely questioning how 2023 will look. Many changes are happening as the heat of the pandemic’s real estate market cools. When competition slows down, you possess more purchasing power.
Next year promises a world of new outlooks for you. The question is, how will those prospects affect you? Get the low down on the 2023 real estate market and discover what you need to do to be ready.
Should you wait?
While 2023 is almost here, waiting now could mean missing out on amazing homes available today. Consider why you want to wait for 2023 and whether or not it’s the right choice for you. It may turn out you’re still saving money for a large down payment, something high-interest rates make all the more useful. Then again, the hope may be that prices will be more attractive in 2023.
Some economic predictions show things turning around in the first quarter. The theory centers around inflation going down, causing interest rates to reduce. Mortgage rates make a significant impact on monthly payments and the overall final cost of the home. On the other hand, some predict the comeback will take longer, with things getting worse before they get better. If it’s a year of harder economic outlooks, missing out on a home now may make a more considerable impact.
End of bidding wars
Low rates were so attractive first-time buyers came out of the woodwork. They found themselves speaking with brokers much earlier than they expected. Some weren’t even considering buying a house when record-low rates inspired them to find a way. These factors didn’t just go away; they flipped to the other end of the spectrum. Today, instead of record-low rates, buyers face the highest interest seen in years.
Should these changes detract buyers enough, there won’t be the numbers for a bidding war. Gain back negotiating power when your offer isn’t facing off against dozens of others. Buying in 2023 may give you strength as a shopper, despite any expense increase. As the year progresses, fewer bidding wars will decrease the cost of homes. While Lafayette real estate continues seeing gains, they’re slowing down, and waiting, no longer means paying exponentially more for the same type of property.
Find the right agent
Besides you, the most significant influences on the house you buy and how much it costs are your realtor and your broker. Once you nail down who you want to procure a loan from, it’s time to hone in on your agent. This is the person who not only shows you homes but negotiates for your best price. They will use their expertise, home knowledge, resources, and vast network to get you your dream home. Don’t tempt yourself to shop without one. There are several ways they can help beyond finding and negotiating for a home. Shopping with an agent provides protections you’d otherwise forgo.
Kelly Crawford offers unparalleled service in the Lafayette real estate market. He will go to bat for your new home and ensure you receive the highest level of care. Kelly focuses on you, the buyer – his mission is to serve you.
Discover your wants and needs
Buying a home in 2023 is about knowing what you want and need. Whether it’s your first home or your 20th, it’s time to serve you best. This market is ever-changing, but the one thing you can’t accept losing out on is a place that works for you. So, dig into what you love most and hate the worst about a house. Look through the homes for sale in Lafayette and tally up the good, bad, and ugly.
You may discover as you place yourself in these properties and feel out life inside of them there are needs you never knew existed. At the same time, you may find features you’d erase from all homes if the power were yours. All of this is fantastic; it’s an exploration of the self and discovering your true wants and needs. Equipped with this knowledge, you’ll know how to assess which homes are the right fit. Your conviction in your desires will grow as you dismiss or fall in love with properties – each place creates a clearer image of your goals.
Make an offer
You found your center, the truth of your needs is known, and a house fits the bill – it’s time to make an offer. Do so with confidence, knowing you honed in on the aspects that truly mean the most to you. Making an offer in 2023 will look drastically different from 2022. While hot markets like the Bay Area are likely to continue seeing lots of buyers, the numbers go down as inflation and interest go up. Less money in the budget and higher mortgage rates can limit options for buyers.
So, you don’t have to pull every trick in the book to make your offer as attractive as possible. You can provide a sound offer with reasonable earnest money and a pre-approved loan. Sure, there likely will be a few of those, so an escalation clause continues to be helpful, but the numbers on that clause will decrease. You won’t have to outbid people by hundreds of thousands for a leg up.
Close the deal
An accepted offer is reason enough to celebrate, but the work is not over. It’s time for inspections and appraisals. Something to consider, in 2023, paying too much over asking may not pan out in the appraisal process. As houses lose their competitive edge, appraisers are less likely to believe a house is worth too much more than comparable homes in the neighborhood. While it’s unlikely an appraiser will cut too deep below your accepted offer, consider the possibility as you negotiate the deal.
When the inspections and appraisals are successful, it’s time to wait on escrow. You don’t need to do much during this time other than wait for the approval and hope your broker will help catch any last-minute savings options.
Move in time
There’s nothing more exciting about buying a home than the day you officially make it yours. The good news about buying in 2023 in moving companies should see a reduction in overpacked schedules. It may be easier to schedule and arrange your possessions’ arrival at your new place. However you decide to go about the move, it’s time to celebrate the victory.
As you start preparing for your 2023 purchase, you’ll find Kelly provides attentive service and formidable negotiation skills. Feel confident as you shop, and contact Kelly today.
*Header photo courtesy of Kelly Crawford
