The real estate market can seem like foreign territory when you enter it for the first time. Property buyers and sellers are on opposite sides of the fence because they have different motives and end goals. While the sellers have listed their property on the market and wait for the highest bidder, the home buyers wish to find the most suitable home for their needs that’s affordable and offers good value for money.
How Has The Pandemic Affected The Real Estate Market
More factors are affecting the housing market in the present year. Apart from market forces and seasonal fluctuations, the COVID-19 crisis has also reduced sales in the residential real estate market. Even though housing prices have remained relatively stable, market demand has dipped. This naturally affects the real estate market at large.
To curb economic volatility in the housing sector, The Federal Reserve Bank has offered a rate cut to assist buyers who need mortgage loans. The 30-year fixed-rate for mortgage loans decreased to an average of 3.29% in the first week of March. After the second emergency cut, the federal-funds rate was floating between 0% and 0.25%.
How will these near-zero rates affect the real estate market? They will not only restore consumer confidence in the coming months but also boost demand for property investments. The federal government is also implementing a moratorium on foreclosures and urging mortgage servicers to reduce payments. These moves intend to prevent a wave of foreclosures, similar to the events of 2008 and keep the bottom from tipping over the edge of the housing market.
On an aggregate level, this has increased complications for property buyers and sellers in Fayetteville and Fort Bragg. Hiring real estate brokerage services can ensure that your investments accrue good value and land a deal that’s perfect for your requirements. You need an expert to spearhead your search in the housing market, and a REALTOR® like Phillip Fehler is perfect for that job.
Expert Eye For Housing And Attention To Detail
You might be out of your element or just unaware of the basics of property features that you should be looking for. This can affect your decision when you’re reviewing a property for buying or trying to stay on track with the legalities and documentation. Bear in mind that the property deeds can round up to 10 pages or more. The red-tape can be a significant deterrent for first-time buyers or sellers. You may not want to put your reading glasses on and peruse the complex documentation when someone else can do it.
A real estate agent will not only handle purchase proceedings but also review all local, state, and federal document requirements. Dealing with this kind of paperwork is part of their job, and they’re great at it, while you may not be. They’ll also pick out minute details or clauses that can be disadvantageous to your investment if you’re buying property.
For instance, the permanent fixture on the sale property, like upholstery, lighting, and kitchen appliances, is legally not included. However, they can be included or excluded in the deal, as mentioned in the purchase. If your seller is offering these amenities as part of the agreement, make sure that’s specified in writing. Since there’s no legal rule against excluding permanent improvements or movable fixtures, you can’t hold the seller accountable if they choose to take them out.
Confidentiality And Fiduciary Duty
A common question that we get is: why should we trust a real estate agent who’s just in this for the money?
With all things considered, this is a very valid concern. While you’re betting all your savings on a new home, you’re putting a lot on stake, including your sentiments, trust, and money. But for the third-party real estate agents, it may just be a business deal.
The truth is that real estate brokers owe fiduciary responsibilities to their clients. By getting in a contract with the entrustor, the fiduciary is ethically bound to act in your best interest. This is a legal duty of the highest order which binds the fiduciary – your real estate agent – in a contract. If the deal involves finances, the fiduciary is bound by law to manage your assets, securing the best investment opportunities, maintaining complete transparency, etc.
According to their fiduciary duties, the real estate agent should maintain confidentiality and protect your privacy. When you enter into a sale or purchase agreement with another party, they may be represented by a real estate agent.
However, their agent owes no fiduciary responsibility to you so they can demand unreasonable details of your finances. You may impart confidential information to them, assuming it to be a legal requirement – but your real estate agent will know better. They’ll know if the information that the other agent has requested is imperative for the deal or not.
You do have an option of recourse if the other party’s agent has lied or misused your information. You can report it to the organization of realtors that they work for – but this can be improbable if the house is FSBO—for sale by owner.
Your Preferences And Potential Risks
Depending on your circumstances or preferences, you may have specific requirements for your new house. This may include outdoor spaces, permanent fixtures, number of bedrooms, size of rooms, garage space, etc. You can have this list at the back of your mind when you set out on a property search, but you may inadvertently ignore potential risks when you find one that fits your needs.
Real estate agents will be on the lookout for foundation damage, referred issues such as mold and mildew, plumbing proble ms, and pest infestations. They’re well-versed in the telltale signs of trouble in a house and can put their experience to good use when sifting through property options for you. You may not realize this now, but a keen eye for damages can save you thousands of dollars. Read more about the estimate financial cost of structural damages right here: Structural Damages That Can Lower Your Property Value
As a buyer, you may be ecstatic to find a property that fits your requirements AND is within your range. But only a real estate agent will be able to warn you against unrealistically low property prices. Furthermore, they can assess your family situation and make suggestions based on that.
For instance, if you’re a family of four with two toddlers, they can find a neighborhood that’s better for future needs. Proximity to schools, lower crime rates, growing local community, and shopping options can be a plus when moving into a new neighborhood. These are only a few of the many fronts on which your real estate broker will be researching to help you find the best home or buyer.
Convinced Yet To Hire Real Estate Brokerage Services In Fayetteville?
If you’re new to the area, we suggest you contact Fathom Realty first. We have the experienced and trusted, Phillip Fehler working with us. Mr. Fehler has helped many families find a new home for their growing needs, and sell off property at amazing prices.
When it comes to valuing your trust and investment, Mr. Fehler understands his fiduciary duties better than anyone. We work in the best interest of our clients to find them what they need for a fair price. We communicate our pricing details upfront and believe in complete transparency.