Managing Real Estate Expectations as Home Prices Rise
The Real Estate market has rebounded in leaps and bounds as a response to consumers moving away from densely populated areas. With this unprecedented demand, and a shrinking supply, this has driven the median home price up across much of the US causing REALTORS® to learn to manage real estate expectations of both buyers and sellers to ensure the best experience possible. The Hudson Valley has become a popular destination in response to the pandemic, due to its proximity to New York City, and has seen both home and rental prices soar. As buyers list and sellers look to buy, managing real estate expectations in this new market is important. What they might have been able to afford six months to a year ago could be very different in today’s market. As a REALTOR®, helping guide and manage the expectations of both buyers and sellers in this current market is crucial. Ensuring you are aware of what this means will help you make the best decisions for your clients, and give them the best guidance when making real estate decisions in the current market.
Managing real estate expectations of buyers
What a client could have bought six months to a year ago, is likely very different in today’s current market. Specifically in the Mid Hudson Valley, real estate has soared, and prices have been driven up by buyer demand. If your client is adamant about buying, but cannot increase their budget, they likely are going to have to make some sacrifices. Advising them on their wants and needs, and what they will likely have to take off their list to reflect the rising home prices will be very important. If they are tied to a specific neighborhood as a need, they may need to rethink the home size, pool, garage space or whether the house is turnkey or needs a bit of remodeling. If they want all the bells and whistles, and are unable to generate a larger budget, showing them options in other neighborhoods nearby their dream location that is up and coming, or a bit farther out, may afford them their dream house, in a slightly different area.
With the increase of demand, there are significantly less options on the market today. Even if home buyers are able to increase their spend, inventory is still much smaller in all price brackets due to this real estate demand. If buyers are not willing to wait until there is possibly more inventory on the market over the next few months or year, they may have to settle with a property that may not have everything that was on their wishlist, but allows them to relocate to a less densely populated area.
Managing real estate expectations of sellers
As home prices rise, sellers will be more interested than ever in putting their homes on the market, especially in areas where there is high demand for relocation. Some might even look to hold off, in anticipation of prices rising over the next few months, which could be possible as inventory shrinks. But, holding off has its risks. With many homes having multiple offers, above asking offers, fewer days on the market and quick closings, it is a very attractive time to sell quickly and easily. If the house is move- in ready, sellers may be able to command a higher price as people are looking to relocate quickly. Weighing these options are important for REALTORS® to discuss with sellers during this incredibly unique market, so that they are properly informed on whether selling now or waiting is the best option for them.
Highlight features in a home that is attractive to this current market
When working with both buyers and sellers, there are key things that they might not have thought about when traditionally looking or selling a property, that might be a big win for them now. Extra bedrooms, a large home office, garage apartment, outdoor space to socialize safely will likely be top priorities for buyers that are looking to relocate and work remotely. Having extra rooms or garage apartments that can act as office space or safe places to quarantine if needed were likely not on the top of consumers wishlist when formerly looking to buy in the Mid Hudson Valley. Ensuring you are able to list properties for your seller that highlights these types of features are key selling points. Helping your buyers seek out properties that have these features will ensure you are doing the best job in managing real estate expectations for your clients, as they look to buy property very differently than in the past.