How to navigate housing market twists and turns

Without an experienced agent at your side, it's easy to feel a little lost in these shifting sands. 

While the number of homes coming onto the market is increasing, buyers still lack the usual amount of choice. This shortage of supply – what agents call inventory – is playing to the seller's advantage. Why? Because there are more buyers than available properties to purchase. So, prices have remained healthy at around a national average of $430,000.

Here's the first twist to the situation: Combined with strong prices, the high interest rates of the past two years have given buyers a reason to pause. That's a factor that does not play well for the seller.

The second twist also relates to interest rates. Sellers often have to renegotiate their own mortgage to purchase their next property. But if they are on a sweet 2%-3% interest rate deal, they're in no mood to swap that out for a 7% loan.

However, it's a mistake to think real estate is only about the numbers. Folks need to buy and sell properties for a multitude of reasons. America is still seeing more than 5 million transactions a year. So, opportunities exist for the smart buyer.

Below, I've offered tips for buying and selling a property right now:

Tips for Buyers:

• Get Pre-Approved: Secure financing pre-approval to strengthen your negotiating power and show sellers you're serious.
• Be Persistent: Broaden your search criteria and be ready to act fast when you find the right home. Persistence is crucial.
• New homes: Builders often offer incentives and are generally more open to negotiation. So take a look at the new home projects in your desired area.
• Be visionary: It's easy to focus only on today's price but consider the property's future value. You should always treat a purchase as an investment.  
• Smart negotiations: Work with your agent to ensure you have a negotiation strategy that ensures a competitive offer that reflects market value. 

Tips for Sellers:

• Realistic Expectations: If you overprice your property, it will languish on the market. Buyers are nervous about paying too much while interest rates are high. Your agent will guide you on a viable price range.
• First Impression: Your curb appeal makes a difference. Invest a small amount of money in landscaping, exterior painting, and repairs to ensure your home stands out from the crowd. 
• Find The Right Real Estate Agent
• Stage Your Home: Using a consultant to stage your home by renting furnishings that give your property star power is a smart move. Ask your agent to recommend a suitable consultant.
• Be flexible: Potential buyers will not always arrive at your door at your convenience, so be flexible when it comes to accepting walk-through requests. The potential buyer you turn away could have been the one who'd have offered you the best deal.
• Have a strategy: With buyers cautious, you should consider offering enticements to strike a deal, such as covering closing costs or being flexible on the settlement period. Often buyers want a longer settlement so they have time to sell their current property.