The Reno-Sparks housing market is the tightest it has been in years, causing difficulties for both buyers and sellers.
According to the Las Vegas Review-Journal, “…the string of record highs illustrates the challenges of a market faced with tight housing supply. The Reno-Sparks median price is up 10 percent from the same period last year. However, the total unit sales of 555 in July 2018 is down 21 percent year-over-year.”
As a buyer, the process can be even more daunting. According to the Reno Gazette-Journal, to buy a median priced home, a buyer must make $80,000 per year. For many buyers, especially small-business owners, this could mean putting their dream purchase off. Interest rates are predicted to increase in 2019 according to multiple sources. How much will interest rates increase, time will tell.
As a buyer or seller, how do you achieve your goals in today’s housing market?
Aaron Clark is a realtor with Edge Realty, a Reno-Sparks based company. He gives advice about navigating the difficult process of trying to buy or sell a house during a turbulent housing market.
One of the first things he advises is to always enter the process with a concrete goal in mind. What are your selling conditions? Where and what are you looking to buy? Having a list of goals and must-haves already defined can save you time, effort, and even money.
On July 6 of this year, Northern Nevada Business View printed that, “According to the National Association of Realtors, the pending home sales index is down 2.2 percent on an annual basis. Lawrence Yun, chief economist for NAR, says this year’s spring buying season will be remembered as one of “unmet expectations”. Pending home sales are at the second lowest level in the past year.”
Tips for improving your home’s value in any housing market
Clark mentions several ways to improve the sales appeal of your house. According to Clark, the kitchen should be the main area of focus. With a larger budget, remodeling your kitchen can add serious value to your house. Remodeled kitchens can have the most impact when selling in a competitive market. Here’s a couple of tips for smaller budgets. A fresh coat of interior paint and new fixtures in the kitchen can achieve a similar goal. Painting the front door can also improve curb appeal.
In the interview, Clark gives advice on how to use time wisely to maximize your loan.
“…if you are a 1099 employee, you need a minimum of two years of 1099 income for loan approval. Some programs allow you to do one year, but there are some nitty-gritty details on that. Overall, it’s going to be two years. For a small business owner that’s going to purchase in 2-4 years; now is the time to start working on loan qualification. You can go in with full knowledge to know what you need to work on. Consider modifying the way you’re paid to improve loan approval success. That’s typically why you would get in early and get that information so that you can customize everything that you need for that lender to get those approvals for a loan,” Clark said.
The Northern Nevada housing market is complex. It seems the numbers are working against both buyers and sellers. Clark’s advice proves there are ways to navigate the market and come out achieving your goals. For more tips from Mr. Clark, click here for the full interview.
For both buyers and sellers, here are three suggestions. Come with clear goals in mind. Seek the professional help of a trustworthy realtor. In some cases, be prepared to exercise some good, old-fashioned patience.
Sellers, be prepared to invest extra time and money to attract the attention of potential buyers.
Buyers, plan and use your time wisely. Preparation can help make dreams of owning the perfect house into a reality.
For more information about Aaron Clark or any of the information above, check out these links.
https://www.nnbusinessview.com/news/reno-area-real-estate-prices-soar-sales-drop-for-mid-year-2018/
https://www.reviewjournal.com/business/housing/housing-prices-in-reno-area-hit-all-time-high-again/
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