The countdown to 2024 is on!
With the end of the year rapidly approaching, we’re entering a season of reflection and preparation – giving thanks for the blessings and lessons we received and learned throughout 2023 while gearing up for what will undeniably be a phenomenal 2024.
As interest rates gradually decline and new inventory re-enters the market, my clients and I are looking ahead and starting 2024 real estate conversations now.
Here are a few strategies we’re exploring as we head into the new year.
- Private Exclusive Listings: Thinking of selling your home? Ask me how you can list your home as a private exclusive. This off-market listing category allows you to control what information is shared about your property while still garnering exposure of your listing to 30,000 global Compass real estate professionals working with active buyers in the market. Property details aren’t disseminated widely and won’t appear on public home search websites. Whether you’re preparing your home to go live to the public, making a move to a new city or simply curious what the market will bear, this is a great way to test buyer interest without counting ‘days on market’. Curious to see what a private exclusive looks like? Check out one of my active private exclusives HERE.
- 2-1 Temporary Buydown: [Add a definition of this tactic] Avoid high-interest rates with a temporary 2-1 buydown. In 2023, I helped my clients save over $125,000 in interest by negotiating seller credits that help reduce borrower interest in the first two years of new homeownership.
- HELOC: Are you a current homeowner with a dream to buy your next home, build an ADU or tackle a home project? Consider a home equity line of credit (HELOC). With a HELOC, you’re borrowing against the available equity in your home and the house is used as collateral for the line of credit. As you repay your outstanding balance, the amount of available credit is replenished – much like a credit card. This means you can borrow against it again if you need to, and you can borrow as little or as much as you need throughout your draw period (typically 10 years) up to the credit limit you establish at closing. At the end of the draw period, the repayment period which is typically 20 years begins.
- 5% Down on Investment Property: Attention investors! This month, Fannie Mae unveiled a new policy that will significantly reduce down payment requirements for owner-occupied 2-, 3-, and 4-unit homes. The down payment will now be 5%, a stark decrease from the previous 15-25% requisite for duplexes, triplexes, and four-plexes. This policy shift presents an exciting opportunity for individuals aspiring to invest in multifamily residences, blending the advantages of property investment with homeownership perks. By lessening the down payment barrier, Fannie Mae has paved the way for prospective owner-landlords to afford these properties much more seamlessly and without as much upfront cash.
- 1031 Exchange: Do you currently own an investment property that you’re thinking of selling soon? A 1031 exchange is a real estate investing tool that allows investors to exchange an investment property for another property of equal or higher value and defer paying capital gains tax on the profit they make from the sale. This method is popular with investors looking to upgrade properties without paying taxes on proceeds. A 1031 exchange – also known as a “like-kind” or Starker exchange – applies to real property, which primarily refers to buildings and land.
- Investing Out-of-State: Diversify your real estate portfolio with out-of-state investments properties. Some of the most popular cities currently on the radar are New Mexico, Texas, Nashville, Alabama and Ohio. Check out THIS ARTICLE for more ideas and insights on markets that demonstrate consistent potential for real estate investment.
