It’s no secret that until recently the real estate market has been bleak. There are a number of factors that contributed to the real estate decline, including: much stricter lending regulations that made qualifying for a mortgage very difficult, high levels of unemployment, and a struggling and unstable economy. Home and property values plummeted causing a chain reaction of problems. Many Wilmington homeowners found themselves underwater, owing more for their homes than the sinking appraised values. More and more, older and sometimes grown children, who were unable to afford housing remained at home. And families and couples who would typically be in the market for a home, simply couldn’t afford one and were forced to rent.

However, there seems to be some good news and long-awaited optimism. As the economy continues to stabilize and unemployment rates decrease, the tide of the housing market seems to be shifting in a positive direction. In fact, this summer is showing some signs of being a seller’s market, perhaps the result of pent-up demand accumulated over the past few years.

Many houses coming on the market are not staying on the market as long as they have in recent years. Sellers are frequently receiving multiple offers and buyers are even sometimes paying more than the list price to secure the home they want. With the steady appreciation of real estate, people are beginning to believe in the value of their homes and once again perceive homeownership as a good investment strategy.

Another piece of good news is that, at least for now, mortgage rates are still pretty low. We’re actually in sort of a “sweet spot” where buyers and sellers can both experience a win-win. So, given this promising trend, if you’ve wanted to or had good reason to buy or sell a home, but have been putting it off due to all of the obstacles mentioned previously, it may be time to make your move.

For growing families who need more space, it’s a good time to look for a bigger home. For empty nesters whose kids have flown the coop, it’s a great time to consider selling a large family home and simplifying your life with the purchase of a smaller home. For homeowners who have been underwater, it’s a good time to check with a real estate agent and find out if the value of your home has increased significantly. If it has, you may be able to get out of that property and make a change without a loss, or even make a profit. 

If you are thinking about buying or selling a home – or both – here are some things to consider:

For Sellers

• Sellers should start by consulting a real estate agent and do your due diligence to determine your home’s current value and a reasonable asking price.
• If you put your house up for sale, be prepared for it to sell quickly. You don’t want to have to scramble to find another place to live if your house sells before you expected. That kind of pressure often leads to settling for a home that you don’t really want, or paying more than you wanted.

• Meet with a mortgage professional and get prequalified for lending so you know what you can afford. Limit your search to the homes within your established budget.
• Know what you are willing to pay and go in with an informed price strategy. You probably don’t want to low ball in this market because it’s likely that multiple offers will be coming on the house you want.
• Understand whether you have to sell your current home before you can afford to buy another one. If you do have to sell first, you can put a contingency in the buying contract that stipulates that you will only close on the purchase after you have sold your home.
• Remember that if you offer more than the appraised value of the home, you will have to cover the overage out of your pocket; it will not be accounted for as part of the loan.