As we enter the middle of 2023, the real estate market in Middle Tennessee continues to fluctuate and change. With the Greater National Realtors Association releasing its April statistics, there is a lot of inventory on the market. In fact, there are about 103% more houses listed this April than there were in 2022. However, whenever you look at the amount of homes sold, there’s about 28% less transactions that are happening on the market.
So, if you’re selling in Middle Tennessee, those numbers are not so great. But, if you’re looking to buy a home, you’re in luck. You have a lot of inventory to choose from, and prices are starting to come down. While listing prices are not necessarily decreasing, purchase prices are.
Maybe you’re hesitant to buy right now. But, we believe that there has never been a better time to buy a home in Middle Tennessee.
Here are two easy steps you can take to make sure you’re prepared and confident when looking for a home to buy.
Step 1: Negotiate 2-3 Years of Savings Upfront
For many potential homebuyers, high interest rates can be a barrier to entry into the real estate market. But, with the current market conditions in Middle Tennessee, it may actually make sense for you to think about negotiating 2 to 3 years of savings upfront whenever you’re looking to pursue a house. This means, let’s say for talking purposes interest rates are at 6.5% and you wish they were at 4.5%. Whatever that monthly payment difference would’ve been, let’s try to negotiate that off the purchase price. If you’re able to negotiate that off the purchase price, what you’re trying to do is refinance in the next 2-3 years whenever interest rates come down.
Here’s an example:
Let’s say you’re looking at a home with a purchase price of $500,000.
At 6.5% interest, your monthly payment would be $3,160.
But at 4.5% interest it would be $2,533 per month.
That reflects a monthly payment difference of $627.
By negotiating the purchase price down by $627 each month, you effectively offset the difference between the two interest rates, allowing you to save money on your mortgage payments.
It’s important to note that these calculations are just an estimate and don’t take into account other factors that can affect a mortgage, such as property taxes and insurance. It’s always best to work with a trusted real estate agent and mortgage lender to get more accurate and personalized information.
Step 2: Get Your House Picture-Ready
One thing you can do to be prepared is to get photographs of your existing house ready in case you find your dream home and need to act quickly. This could involve taking photographs of your home’s exterior, landscaping, and interior spaces to showcase its best features. By having your home picture-ready, you can make a stronger offer and avoid the hassle of having to get your home ready for photographs at the last minute.
In the springtime in Nashville, for example, flowers are in bloom, trees are turning nice and green, and the grass is not dead or brown from the summer heat. This is one of the best time to capture photos of your house and save them. Because, if you are able to move on the house quickly, you don’t want to have to make a contingent offer to get your house ready for photographs in a week or two. Delays like this can make a big difference in a quick market.
Is Now the Right Time To Buy?
If you’re a potential homebuyer in Middle Tennessee, now is a great time to take advantage of the current market conditions. With a surplus of inventory and interest rates on the rise, negotiating a lower purchase price and locking in a fixed-rate mortgage can help you save money in the long run. Just be sure to take advantage of the steps mentioned above to make ensure you are ready to act quickly when you find your perfect home. It’s also important to learn about why buyers or sellers markets matter. When there are more properties for sale than there are buyers looking to purchase, it gives buyers more bargaining power and often leads to lower prices.
What’s the best way to find a home in Middle Tennessee?
If you’re looking for a home in Middle Tennessee, our Property Search is easy to use, customizable, and helps you find exactly what you’re looking for.
At Scout, we understand that buying a home can be intimidating. That’s why we’re committed to helping potential homebuyers every step of the way. We pride ourselves on being knowledgeable, responsive, and honest. Let us be your guide and work with you to find the perfect home within your budget, and we’ll be there to answer any questions you have throughout the process. Call us today at (615) 868-9000 or submit our easy Buyer form.