What is happening to the housing market? ...to the land market? What should I expect?
There is a lot going on right now. I am going to try to break this down and over-simplify it with the goal of addressing some common questions that I get asked during the past 30 days by buyer and sellers who have contacted me for consulting services.
First things first. Personally I look at the "Housing Market" and the "Land Market" as 2 separate markets because they are. They have different variables and factors, and are in many way independent of each other.
Probably 4 of the most interesting factors in the current real estate marketplace are:
Interest rates on a variety of types of loan products: FHA, VA, USDA, THDA, Conventional, Land, Construction, HELOC, Personal, Business, Etc. (Please only use true fixed rate lending, unless you are a very experienced borrower with a back up plan that is fool proof, because as we see today, and in the 1980s, interest rates can get very high and fluctuate. Make careful and informed decisions, and don't base those decisions on the lender who is selling you a product; consult with lots of people. Also, don't count on the hope of a REFI!)
The cost is relatively high currently for purchasing building materials and of purchasing skilled labor for construction, excavation, tree removal, surveying, soil testing, well drilling, electrical, plumbing, septic, electric, public water, and internet, phone, and cable.
Gas prices are relatively high currently, double or more what they were a year or so ago.
Overall inflation and it's impact.
Regardless of these factors, be careful not to be UNDERSOLD and under-marketed, when selling your property.
Working with an agent that has a superior amount of experience in data analytics and marketing for raw land, as well as in luxury home analysis, and marketing, is the best way to make sure that your property, no matter what you have been told by others, sells for the most amount of money possible.
Your property is your investment.
You've likely paid all kinds of fees, taxes, upkeep, improvement costs, and more over the years, not to mention interest fees if your borrowed at some point to obtain it or improve it.
Text or call me at (865)617-4783 to schedule a professional consultation and market price analysis of your property.
Also, if you are a buyer or investor, having a similar type of analysis conducted on the subject property, which you are interested in buying, can help to ensure that you are not over-paying.
Most of all, as advice to buyers and investors, I would tell you this:
You're power is in your ability to remain calm, not be in a rush to buy, and be willing to wait, walk away from, or lose a deal.
Unless you are in a situation where you are in an emergency timeline to buy a property, never rush.
If everyone is in a rush, or if there is just a limited supply and overwhelming demand, THAT is when prices are driven up, and things get crazy.
Things appear to be calming slightly, and that can work in the buyer's favor, by creating a slightly more reasonable setting for negotiations and verifications.
Lastly, if you are looking for some creating construction solutions, I have just. Text and call me today to schedule a consultation about that.
Things are not always as they seem on the news and in articles, and micromarkets can vary from trends in macromarkets. Just like the May-Apple Flower (white below), sometimes there is a bit of beautiful good news hiding beneath the surface of those regular-looking leaves. And, just like the Yellow Trillium below, picking something in a hurry will destroy the bigger perennial opportunities that could have been realized with patience and wisdom. SERIOUSLY THOUGH, never pick these flowers, ever. If you leave them alone, they will grow back MASSIVE with each passing year, but they must be allowed to carry out their natural processes un-interrupted.
I pray that God blesses you with health, wealth, and peace.
Amber Nestor - Professional Land and Luxury Real Estate Agent for Tennessee