2022 was another roller coaster year. Following 2021, which was the best sellers' market in anyone's memory, rising interest rates (up to over 7%, the highest in at least 20 years) and lower inventory numbers restored some balance to the market. But with interest rates falling somewhat towards the end of the year and the coming of the "season" for Southwest Florida, the roller coaster market is headed back up again. That said, what should buyers look to do in 2023 to secure the purchase of their "dream" home?
Reality check
For starters, give up on the idea of finding your perfect "dream" home. In a market like this, you'll need to compromise at least somewhat. Prepare yourself for the prospect that you might have to modernize or otherwise upgrade your new home. Prepare along with that for the seller not necessarily being willing to fix every problem that turns up in your home inspection. On the plus side, remodeling your new home will help to make it yours, with the colors and finishes you like and not those that the seller liked.
Be ready to buy on short notice
There may be multiple offers on the most desirable homes. You should be ready to finance on short notice to get in front of all those other offers. This means that if you're not one of the many cash buyers here in SWFL, get pre-approved for you mortgage. We can't emphasize this one enough. If you have to wait even a few days to get approved, that house may well be under contract by the time you're approved.
On the other hand, the return of some balance and sanity to the market should mean that, unlike last year, you won't have to make offers so quickly that you won't get to at least see the homes your making offers on. Don't make the mistake of offering sight unseen, because that market isn't quite that hot anymore. And don't waive inspections! You can get badly burned buying a home that's literally falling down by not taking at least a little time to look it over and have it inspected.
New construction is going crazy here
In an effort to keep up with the crazy demand in SWFL for the last two years, builders have started new developments all over Collier County. Now that demand has slowed somewhat, they have a lot of new home inventory, and to keep their crews fully employed, they need to keep building. New homes actually comprise about 1/3 of the market, so if you can't find something you like in a pre-owned home, consider new construction.
On the plus side, a new home won't (or shouldn't) need any fixes or upgrades for at least a few years. This can give you peace of mind while you spend a few years settling in. Also, if you're one of the first buyers in a new neighborhood, you can usually get somewhat of a discount on your new home. On the minus side, if you buy early, you'll have to put up with construction all around you for a couple of years. But then, those couple of years go by pretty fast, and then you'll be living in a new home in a new neighborhood.
Consider these tips when buying your new home in 2023, and for further information, contact a realtor. We have experience in finding the best home for you.
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