America's real estate market is warming up – literally. Spring sales season is underway, and a wave of summer sales is just around the corner.
It's a favorite time for buyers to hit the market.
This year, they're seeking out great deals as the market finds its balance after a spike in post-Covid property values and interest rate rises that pumped up mortgage costs but reduced inflation from 7.4% in 2022 to 2.8% today.
The Federal Reserve's decision to reduce its recommended cash rate to 4.25%-4.5% has given buyers confidence, and we're already seeing a busy period in the initial weeks of spring.
If you're still sitting on the sidelines and wondering whether you should upsize, downsize or buy your first home, it's a great idea to talk to real estate agents about what's happening in the neighborhood.
We'll offer a frontline perspective, and I'd be delighted to appraise your property and give you a guide of its value.
If you're about to enter the market, either as an owner or a first homebuyer, you should talk to at least three agents. Here are some specific questions you should ask before appointing one.
How long have you been an agent? Those with a few years under their belt will have experience in handling a diverse range of clients and situations.
Describe your professional network: An important strength of an agent is their neighborhood knowledge. This helps in finding a desirable property and when the time comes to negotiate. Ideally, they'll have a network of other agents, mortgage brokers and lenders.
What's your approach to finding the right home? You want to hear how they tailor your needs and match them to specific properties. Buying agents should offer to put forward a plan that will reflect a highly effective buying process.
What's your negotiation approach? This is a critical issue, of course. You want to be confident they'll protect you from over-paying but not lose a property because of a low-ball offer. The other strand to this question is how they handle a competitive buying situation.
Do you work with sellers or buyers? Most agents work for both, but they tend to have a preference.
Can you provide client references? These should be powerful testimonies for how you should expect to be treated.
What's your experience in this neighborhood? Local knowledge is key. Combined with a strong network, an agent who knows the area is best positioned to find a suitable property.
How much focus can you give me? Agents have multiple clients and some work part-time. So, satisfy yourself that your agent is fully committed. This becomes essential in a competitive situation where you're bidding against another party.
How often will you be in touch? Should you anticipate a weekly call, or a message twice a week? Buyers who get radio silence become uneasy quickly, so hold your agent accountable. Also, ask how they like to stay in touch – phone, email, text.
Communication: This isn't really a question but more an observation you should make during your interviews. Are the agents clear and concise in their communication? Do you feel you can work with them?
