Homebuyers and home sellers biggest market misconceptions going into 2023
PHOENIX (3TV/CBS 5) - As we move into a new year, many prospective homebuyers and home sellers are looking ahead.
A new Zillow survey uncovered a few misconceptions among would-be buyers, sellers, real estate agents, and others in the market. Nearly half of all agents say that the biggest misconception among buyers is that home prices will fall significantly in the new year, while a third of prospective buyers say they believe they should wait for mortgage rates to come down before buying.
“There is more opportunity in this market than I have seen in the past five years if buyers approach real estate as a long-term investment, " Michael Perry with The Perry Group in Salt Lake City, Utah, said. “If prices or mortgage rates take a meaningful dip, all those sidelined buyers will likely come rushing back to the market, driving up competition and prices. If the buyer can purchase today, they have bargaining power, more options, and more time to find the right home, instead of being rushed into a purchase they might regret.”
Zillow’s research showed that a drastic drop in home value costs is unlikely and instead will flatten. Around 28% of agents say the biggest mistake new homebuyers make is not separating their home needs from their home wants. Nearly 3 in 5 agents say potential buyers are taking more time to consider a home than before and frequently make offers below the listing price. When it comes to home sellers, most agents say they see sellers anticipate multiple offers, a price above market value, a quick sale, and no need to cut their pricing--something they believe is unrealistic in real estate.
“Sellers can no longer put a for-sale sign outside their home and expect the offers to pour in,” said Koby Sway, an agent with The Briley Team in Omaha, Nebraska. “They have to roll up their sleeves and make necessary repairs and home improvements before listing their home for sale.” 3 in 4 agents say pricing a home correctly is the most crucial seller strategy. Competitively priced homes go under contract in 19 days across the nation.
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