As a group that loves a good (settlement) celebration, Placer Title Company is already thinking about our New Year’s resolutions, and we would love to hear some of yours this holiday season. As we know, for many first-time homebuyers, 2022 is the year they are ready to finally purchase the home of their dreams. And it’s expected that the 2021 seller’s market will continue well into the new year.
Here in California, rising prices and the expected prolonged supply constraints have caused predictions to stay conservative but positive. Consider the 2022 Housing Market Forecast from the California Association of Realtors, for example. That great organization expects home sales to be slightly down in 2022 but says the number of transactions within the state should still be the second-highest level of the last five years.
We will believe in a slowdown when we see it. However, any cooling of the market could be “a welcome relief to potential homebuyers who have been pushed out of the market due to high market competition and an extremely low level of homes available for sale,” C.A.R. President Dave Walsh said in the forecast.
No matter what happens, though, prospective buyers will be looking to real estate professionals for guidance before and during the sale. With that in mind, this recent article from realtor.com got us thinking about four ways our Realtor friends can help their clients maintain their optimism for the new year while staying realistic and competitive.
Encourage them to be open-minded.
As we mentioned, inventory is still at a historic low. Competition is likely to drive up prices on your clients’ “perfect home.” Coach them to be open to compromise and, whether it’s small cosmetic changes or a different area, identify where they’re willing to flex.
Get them pre-approved.
Let your buyers know how important it is to be ready to act when it’s time to make an offer. Pre-approval could be the difference between landing their dream home or being left in the dust once the paperwork is finalized.
Be realistic about price and the bidding process.
As we said, prices are going up and choices are limited. You’ve probably already had frustrating experiences with the reverse pricing and “bargain basement” strategies used to drive up prices. As you know, if the cost is too good to be true, it probably is. Be upfront with your buyers and prepare them for this reality.
Sweeten the deal.
Of course, there is more to an offer than just the price. While a highly competitive offer will be their best shot, encourage them to supplement it with other incentives. These might include foregoing the seller-paid home warranty, offering a shorter closing period, or not making the purchase contingent on the sale of a currently owned home.
Using these four strategies, you can help your clients make 2022 their best year ever and fulfill their housing dreams. When you’re ready to start the title and escrow process, rely on Placer Title as the experts you and your buyers need. Our teams spread across 50+ offices across this great state are here to make it as easy and enjoyable as possible. Contact us today!