Tips for homebuyers who are planning ahead for 2019
A couple of newlyweds are finally moving in together, but they’ve decided to rent for a brief period, advancing slowly and methodically toward a home purchase sometime next year.
Felipe Chacon, a housing economist with Trulia, a real estate research firm, doesn’t know that couple. But he’s not surprised they’re taking a wait-andsee approach.
“There are a lot of headwinds hitting buyers right now. Affordability has been a growing concern for several years, and now mortgage rates are starting to pick up,” Chacon says.
“People ... know we could be due for a recession and ... hope conditions will be better for buyers next year,” he says.
One sign that the strong seller’s market is starting to recede is that more sellers are marking down their prices. According to a Trulia analysis, the share of sellers taking price cuts has shot up in recent months. The number of cuts has grown to its highest level in four years.
Meanwhile, sales of newly constructed homes fell sharply in September, reflecting a weakening in the seller’s market. And Lawrence Yun, chief economist for the National Association of Realtors, reports that sales of existing homes also dropped in September.
“This is the lowest existing home sales level since November 2015,” Yun says.
Here are a few pointers for homebuyers planning for 2019:
Find an experienced agent.
People who are relocating are advised to search for an agent who has years of experience selling homes in any com- munity they’re considering, says Tom Early, a real estate broker and former president of the National Association of Exclusive Buyer Agents.
A strong agent will help you navigate the new locale, supplying data on home prices and valuation trends, school performance statistics and information on nearby amenities, such as parks and trails.
Avoid an agent who tries to rush you.
Although agents don’t make money until a sale goes through, a reputable one won’t try to hurry you into a purchase before you’re ready, says Eric Tyson, co-author of “Home Buying for Dummies.”
“It’s a big red flag if an agent starts pushing you,” he says.
Of course, it’s not fair to ask the agent to spend multiple weekends over months showing you properties unless you’re progressing toward your goal of homeownership. Still, it’s not unreasonable to spend up to six months doing intermittent (yet focused) outings with an agent.
Visit open houses.
If you’re planning a major housing change, such as a move from a suburban house to a high-rise condo, you needn’t rely solely on your agent. You can do much of the footwork.
“By visiting a lot of open houses, you can narrow down what you do and don’t like in a home,” Early says.
Many open houses are heavily advertised with street signs posted by listing agents. If you’re considering condo apartments, Early suggests you consult newspaper or internet advertising for open house details.
Conduct your own research.
Some of the most useful sources of information are people who live in the areas you’re considering.
“People usually know their neck of the woods as well as any professional who sells property there. Unless they’re trying to unload their home, the neighbors will tell you the real skinny about traffic tie-ups, school problems and noise issues,” Early says.
He recommends you walk through the community on a weekend afternoon when many people are likely to be out in their yards. Tell them you admire their neighborhood and are considering a move there. Then politely pose a few questions.
For those considering a condo, an agent who lists property in that building could line up resident contacts for you.