That’s right. 2021 is the year of Opportunity!
If you (understandably) put things off last year or postponed major decisions, this is the year! And if you had thoughts about real estate, in the long or short term, 2021 promises to offer interesting options for you!
As the year unfolds, interest rates, a new administration, high demand and low supply, will all present their own challenges. It is not uncommon to have hurdles in the world around us. That makes it important to consider what is best for YOU and your situation and then plan accordingly. Let’s break this down:
Buying Today: Interest rates are at record lows. This creates greater buying power for buyers right now. Example: A buyer may qualify for a home priced at $260,000 at today’s rates. If rates go up 2 percentage points, that same buyer may only be able to afford a home priced at $210,000. A good reason to buy now. (Next Blog: How Buyers Can Prepare for Today’s Fast Moving Market).
Buying Tomorrow. For those of you considering a move in a year to five years, there is still an opportunity for you to seize today: Take this year to decide what you are looking for in a move (More space? Bigger yard? A new city altogether?). Work on getting your finances in order. Pay down debt and be more deliberate about saving. Go one step further and talk to a lender. This will help you learn what it takes to buy and what closing costs to expect. Creating a plan will keep you focused and on track for when the time is right. On a side note, if you know that you will be buying in the near future, there are some opportunities to seize with caution. Major purchases like a new boat or a new ride may adjust your debt-to-income ratio. A new job can also affect your qualifying. A conversation with your lender can put this in perspective for you.
Sellers. Inventory is staggeringly low. Multiple offers are common. Ask yourself what you are waiting for. What needs to happen before you are ready to sell and capture this market? Did COVID factors speed up or slow down your original plan? If you decide you are staying put for now, focus your efforts on getting your home ready. Reach out to us before starting any major remodeling. The projects on your list may not improve the sale of your home or even add more to your bottom line. We can discuss specific pros and cons with you.
Seize the Opportunities: We are in uncertain times. In the months to come, what will the market look like? What impact will the vaccines have on re-opening businesses? What will the economy look like 6 months to a year into the new administration? All good questions. But again, only you can know whether or not any of these factors outweigh your need to have a new view out of your windows this Summer. As you dream forward, we wish you an amazing year filled with the greatest of opportunities!
Kristin and John Beise, RE/MAX Advantage Plus
