MoneyWise Senior Staff Writer, Serah Louis, shared expert insights from top leaders in real estate on where the housing market is today, and potential future outlook - click here to read the full story: “Mortgage rates just took the biggest plunge since 1981 – but analysts say the market is ‘not out of the woods yet’.”
Not to be the Grinch of real estate – but comparing the current “below 7% 30-year mortgage rate” to this time last year when rates were roughly 3% - ugh is all I have to say. To find a silver lining, at least it’s headed in the right direction, unlike the 1980s…
For buyers who have slowed their home search due to higher mortgage rates, an opportunity to consider - Build!
Before I go further – I recommend finding a Realtor (like Daniel Henry, Coldwell Banker, aka…me), who is educated in construction and will negotiate aggressively on your behalf every last item down to the dollar decimal to get you where you need to be.
There’s still a major housing shortage – that, coupled with higher interest rates and inflation on the cost of goods, has left buyers without many options other than to stay put.
However - given the number of new development communities throughout Lake, McHenry, and Cook counties – the buyer negotiating power is in your hands.
The Goal: Find a floor plan in a community you love and start to work the numbers.
Sounds straightforward and simple – but it never is.
That’s where I come in. I will help scrub the numbers to make sure you’re well-informed, with no hidden financial surprises. That includes walking through the cost of materials, an overview of past, present, and potential future increased/decreased costs based on which way we head with inflation, and ‘what-if’ scenarios to make sure you’re comfortable moving forward.
We’ll talk about what to negotiate, what the developer is willing to ‘concede’ (i.e., Lot premiums, more incentives, mortgage buy-downs, etc.) and so much more. We’ll make sure together, we’re within budget and protecting your investment at every new construction milestone (yes, there’s usually a lot more than a final walk-through).
Many people find themselves walking into a new construction sales office without a Realtor and leaving behind a lot of money on the table. Don’t let that be you – let’s connect for a consultation before touring new communities.
FYI - start the process now, and by August 2023 – you could find yourself in a brand-new home, right before school starts for those living with school-aged children.
In good health,
Daniel Henry, Coldwell Banker, Long Grove, Illinois 60047