Welcome, 2022! If you’re like most of us, you may be feeling excited at the prospect of what a fresh new year may bring. Every year, the experts at 23 Legal compose a list of real estate predictions to guide you in your endeavours for the new year. This year’s predictions are guaranteed to boost your interest in future real estate projects such as moving, renovations, estate planning, and more!
“All markets are seeing strong conditions and home sales are the best they have been in 15 years.” National Association of Realtors
If you’re at the start of an exciting new real estate endeavor this year, it’s understandable to be nervous about the unknown and taking a risk.
Reading 23 Legal’s helpful guide before diving into any real estate transaction may help you feel more confident to get started…
1. Digital real estate boom: The dawn of a new era is here, with countless reasons to prefer viewing properties via your digital devices. Many people are opting to do just that! The boom of 3D, digital walkthroughs, and zoom home viewings is here to stay. Whether someone needs the physical distance for health reasons or busy schedules, being able to sell or purchase property digitally is a significant trend for 2022.
Not technologically savvy? Don’t fret; there are easy options for creating digital ways to view homes, zoom closings, speedy sales that accommodate buyers and sellers. Learn more about how to digitize your real estate experience!
“61% of buyers said they wished more listings included 3D tours and 46% of millennial buyers said they would be confident making an offer on a home they toured virtually. Listings with a Zillow 3D Home tour got, on average, 45% more views on Zillow than listings without.” Zillow
2. Home features that amplify the importance of mental health: After the past two years, the need to nurture one’s mental health through soothing living environments has skyrocketed. Home features like large windows or south-facing homes, backyards with room for gardens, and even spa-like master bathrooms are increasing home values! Another great way to choose a home with your mental health in mind is by creating a custom build. This healthy trend of focusing on personal well-being is one to look out for. Your home, your way!
3. Balanced mortgage rates to home costs: Don’t get discouraged by higher mortgage rates. During recent years, we have seen mortgage rates sometimes fall below 3% to offset the high costs of homes (especially during 2021). With home prices being reduced within the market, interest rates have gone back up. The numbers all balance out in the end if you have a great lender and real estate lawyer to guide you through the process. Three key takeaways in understanding new rates and how they will affect your purchasing a home:
A. Clean up your finances and create a realistic home purchase budget.
B. Research your lender before finalizing any mortgage!
C. Get pre-approved before home shopping, not just pre-qualify.
Use our tools to help understand mortgages and connect with a loan broker!
“We expect 30-year-fixed mortgage rates to rise slowly from around 3% to around 3.6% by the end of 2022, thanks to the pandemic subsiding and lingering inflation. That would mean about $100 more per month in mortgage payments for the median home.” Redfin
4. Starter homes vs. renting: People are jumping on the opportunity of purchasing a smaller “starter house” over renting. This trend is becoming more popular with those wanting their money to be going towards a mortgage that their credit can improve with versus just paying rent once a month to something they don’t even own. Some of the benefits of doing this are: as you pay off your mortgage on the smaller home, you build your credit and give yourself a better chance at buying a bigger house in a few years. Weigh the pros and cons of home buying and renting on our blog!
5. Perfect time to flip a property or buy a second home: If you’ve been waiting for the right time to test the home flipping market, now may be the time! Professional home renovators of all skill levels are buying smaller homes to flip for profit in 2022. With the market currently being balanced between buyers and sellers, taking the time to work on smaller real estate investments has never been more practical. This same trend allows homeowners to purchase second homes without fear of heavy mortgages. From DIY home projects to real estate investment guidance, 23 Legal can help you feel confident in your home flipping or second home purchasing process.
“Great to work with! Truly knows the process. Great communication throughout the entire sale and purchase. I highly recommended attorney Ben Weaver!” Client Testimonial, Facebook
6. Climate change selling and buying points: With unpredictable weather now becoming the norm, homebuyers search for homes that have extra home protection against the elements. Features like reinforced windows for high winds, foundation guards preventing flood damage, and top-of-the-line furnaces for brittle cold months. Depending on your area, some home additions and features for weatherproofing will matter more than others.
“As natural disasters and extreme weather events continue to increase in frequency. Home sellers will also likely make significant investments in climate-change resilient home features in order to appeal to climate-conscious home buyers.” Forbes
7. Property expansions over relocation: Multi-family homes are on the rise! The desire to be near our loved ones has become a significant home development factor, possibly due to the tumultuous past few years. Multiple generations of family members living under one roof has increased in our country. Some people opt to keep their elderly loved ones at home over relocating them to independent living in their golden years. If you are currently caring for your elders, read more about easing them into the next phase of their lives.
8. Getting all of your important legal documents in order: A major lesson these unpredictable past two years have taught many of us is that tomorrow isn’t promised to anyone. And while it might feel morbid to think about death or severe illness, it’s more concerning to think about leaving our loved ones uncared for. This is why the age of people setting up their real estate plans has gotten younger over the years. Millennials and Gen Z alike are reaching out to knowledgeable attorneys like Ben Weaver to protect their loved ones and financial assets with the aid of estate plans.
“We worked with Ben this past summer in buying our new home. He is incredibly responsive, always willing to answer questions, and gets the work done very quickly. He gave us great advice when negotiating the various contracts we went through. If we ever need attorney help for future homes, we will definitely work with Ben again!” Client Testimonial, Google
There’s one point that doesn’t need to be predicted: Hiring an experienced attorney to guide you through your real estate endeavors is the best way to ensure 2022 goes as smoothly as possible.
When you have 23 Legal in your corner, enjoy peace of mind and the confidence to tackle any real estate project this year may bring!
Visit our website to learn how attorney Ben Weaver can help with the legalities of buying a new home, selling your home, or estate planning.
Please feel free to contact us for assistance or any questions you have. Click here to read 5-star client reviews!
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.