People looking to purchase homes are finding that there are many available choices on the market, but not enough to meet demand, and that fact leads to higher prices.
Personal finance author and radio host Dave Ramsey explains that the current market favors people who are selling homes.
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If you are looking to purchase a house, there are options, but you must be sure you are financially prepared to pay more.
A look at some statistics from Realtor.com and Freddie Mac, emailed to TheStreet from Ramsey Solutions, shows that the median home price jumped from $424,900 in March 2024 to $429,950 in April 2024.
A 15-year fixed-rate mortgage increased from 6.18% in March 2024 to 6.26% in April 2024.
Reviewing year-to-year figures, the total number of homes for sale rose from 562,966 in April 2023 to 734,318 in April 2024, a large increase of 30%.
Dave Ramsey and his Ramsey Solutions team suggest one big key to navigating the real estate market in its current condition.
Dave Ramsey's team explains how to find a 'great' real estate agent
Ramsey Solutions discusses how potential home buyers' and sellers' biggest decision can be successfully choosing the right real estate agent.
"You can't afford to hire an agent who's winging it," Ramsey Solutions wrote. "You want a seasoned professional who'll do the job right."
Ramsey Solutions' Rachel Cruze explains that feeling confident in selecting the best agent for you involves five steps.
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First, Cruze suggested, is understanding some basics about real estate agents. They can be thought of as guides through the papers and chores all the way through closing on the deal.
Buyer's agents help you find a piece of property in your price range in the neighborhood you are looking. They also handle showings and negotiations over money.
For those selling homes, agents help you decide on a selling price. They also arrange for the home's inspection, handle staging of the home, create a marketing plan and assist you on picking the right offer and negotiating with the buyer.
Second, Cruze discussed a few things that must be done before looking for a real estate agent.
For buyers, these include setting a housing budget, saving for a down payment and getting preapproved for a mortgage.
If you are selling a home, you need to understand your home equity (basically, the amount your home is worth minus the amount of money you owe on it). You also need to have cash on hand for expenses such as staging your home, repairs and moving expenses. You also should know exactly where you are planning to live next — your home may sell quickly.
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The qualities of an excellent real estate agent
There are a number of characteristics to consider when choosing the right real estate agent for you. Among those is experience.
Some new agents can do outstanding work, but that's a risk, Cruze explained.
"That's why I recommend looking for an agent with multiple years of full-time experience," Cruze wrote. "You don't want an agent who's doing this as a side hustle in their spare time."
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An agent should also have certifications and professional memberships and be familiar with the local market. It also helps to check the agent's customer reviews.
The fourth step is to ask for referrals. You can seek out referral programs that vet agents for you, Cruze suggested as an example.
Finally, one important move not to forget is to interview multiple real estate agents.
"Remember guys, this is a big deal!" Cruz wrote. "You want a true professional on your side, and so you've got to set the bar high."
Questions to ask include those about experience, how many homes the agent closes on in a year and how much commission fees are.
You might also inquire of a potential real estate agent on what sets them apart from others and whether there are previous clients the agent has worked with before that you can talk with.
"Chances are, you already know a few real estate agents who'd be happy to help you buy or sell a home," Cruze wrote. "But with so much money on the line, it's important to find the best agent for you."
"Don't settle when you’re choosing an agent."
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