What Homebuyers Can Learn From Our 2017 Market

Northeastern Ohio Podcast with Michael Kaim

What can 2017 teach us about purchasing a house in 2018? Here are five very valuable takeaways.

Looking to buy a Home in Northeast Ohio? Search all Northeast Ohio homes for sale. Selling Your Home in Northeast Ohio? Use our home evaluation tool.

There are five lessons homebuyers can learn about our 2018 market by looking back on what happened in 2017.

First, homes are still lower than their pre-recession peak prices. There are some exceptions in major cities like San Francisco and Denver, but there are still a lot of great deals out there and there is still some value we’re looking to get to in the next couple years.

Second, homes are selling quickly. On average, homes spend 45 to 60 days on our market, depending on price range and area. There is a very low supply of homes and a very high demand, so make sure you have an agent representing you who can put you at an advantage in finding the best deal possible.

Third, investors are everywhere. If you’re looking to invest in a property, make sure you’re ready to put your best offer forward. Again, having an agent such as myself by your side can help you prepare your proof of funds, have your purchase agreement ready to go right after you see a property you like, and make sure you pay the amount you should be paying considering you might be in a multiple offer situation.

Make sure you have an agent representing you who can put you at an advantage in finding the best deal possible.

Fourth, more deals were falling apart than ever before in 2017 because of things like mortgage and inspection issues, so when you’re ready to buy, know that you can negotiate inspections in your favor. Also, make sure you have your mortgage information ready and you’re pre-approved with a solid, qualified lender so you have the best chance possible at closing on the deal.

Finally, buying still saves over renting. People ask me all the time whether they should rent or buy. If you look at the national average of rental rates, you’ll see that they’re up across the entire country. This means in most markets, it would cost you more to pay rent than it would to buy a home.

For example, if you buy a $200,000 home in the Cleveland market, your monthly mortgage payment would be $800. By comparison, renting that same house at current rental rates would cost you as much as $2,000 per month. Essentially, you’d save as much as $1,200 per month by buying.

If you have any other questions about our market in 2018 or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you.