2022 was definitely a seller’s market. Throughout the year, sellers could demand higher prices and enjoy quick sales that were favorable to them.
On the flip side, many buyers had to accept concessions like foregoing inspections just to secure a property.
This year is shaping up to be different. The market was already cooling during the last few months of 2022, and it looks like this will continue throughout 2023.
For those interested in buying land in Texas or lots for sale in Edinburg, there’s plenty to know about the upcoming months so you can make the best decision when purchasing property.
How 2023 Is Shaping up for Property Buyers and Sellers
Changes in housing pricing and availability will make 2023 very different from the past few years. If you’re preparing to put up your land for sale or buy property this year, these are the effects you can expect.
How Buyers Will Be Affected
If you’re looking to buy land in Texas, you will have an easier time in 2023 as most properties will stay on the market longer than in 2022.
Additionally, more homes will be on the market and stay there, which means you will be less likely to face stiff competition for any individual property.
The biggest challenge, however, continues to be affordability. Interest rates and inflation have chipped into savings for many people. Higher prices have also put many properties out of reach for first-time buyers, who will face the hardest challenges since rising rental prices have taken up more of their budget.
If you opt for a mortgage over owner-financing, you will deal with high-interest rates and a larger down payment.
How Sellers Will Be Affected
High rent prices and rising mortgage rates have caused many buyers to put off making the large purchase; higher down payments on costlier homes have made it a challenge for many to save enough.
This means buyers will be choosing between settling for smaller properties or waiting until prices go down.
If you do list your property, you could be facing a lot of competition for other lots for sale in Edinburg. While properties tended to be sold very quickly in 2022, you can expect a longer wait time before you make a sale.
While there were fewer listings in the last few months of 2022, you may still need to make concessions to secure a buyer in the early months of 2023.
How Property Buyers and Sellers Can Prepare for the New Year
If you want to buy or sell property in 2023, you will need to prepare yourself for the market, and both will need to compromise. While this is less than ideal, it will help you buy or sell successfully in a reasonable time frame.
What Buyers Need To Do To Prepare
You will need to keep your budget in mind as you look to buy property. Figure out what you can actually afford and stick to that number. Properties in most locations will take longer to sell, so you won’t need to offer a higher price to get a chance at a property.
Properties in desirable locations will still go quickly, so you will need to stay alert for properties in your budget that also meet your needs. While owner-financing has some risks, it may be a better solution if you are struggling to get a mortgage.
If you are looking into an affordable property for loved ones, you may be able to secure better pricing this year. Owner-financed properties tend to be flexible enough that you can even afford to gift one.
What Sellers Need To Do To Prepare
You should temper your expectations when you place your property on the market. While the previous years had been a seller’s market, it is shifting to give buyers more power. Expect to receive lower offers, and you may need to drop the price to secure a sale.
Properties that have been recently repaired or are ready for use immediately will be more likely to sell for the desired price. It can be a good investment to do some cheap repairs on your dime and attract more buyers. You may also consider aiming for buyers moving to the area and emphasize why your property is located in a great place to live.
You will also likely need to make concessions to appeal to buyers. Be flexible with closing dates and keep your buyer’s stretched budgets in mind. Also, be aware that concessions that depend on inspections, appraisals, or financing have become common again.
Look To Owner-Financing This Year
If you want to skip the challenges that come with securing a mortgage, owner-financing may be the best option for you. Santa Cruz Properties can help connect buyers and sellers to make the process smooth for everyone involved. Contact us today to learn more about owner-financing and if it’s right for you.