For Sellers

Let’s start with the sellers. Everyone is asking the same question: Is it still a seller’s market, and can I sell my home above the listing price?

For my local real estate market (Montgomery County, Maryland), the answer is yes. If you have completed the necessary repairs and renovations and present your property well, it can sell for top dollar due to the lack of inventory. There aren’t many options available, but buyers are still looking to purchase within different price ranges.

While high interest rates have pushed some people out of the market, there is still enough demand to balance the current inventory. I personally experienced a bidding war between buyers for a property listed at $650,000. It was located in a highly desirable area, well renovated, and ready to move in, and it ended up closing at $750,000.

Another aspect to consider is that sellers may be hesitant to make their next move due to high interest rates. As I always mention, focus on the monthly mortgage payment for your next house instead of the interest rate because most sellers in today’s market have significant equity in their homes to facilitate their next move.

For Buyers

Now, let’s talk about the buyers. As we all know, interest rates have dramatically increased in the last few years, pushing many buyers out of the market because they can’t afford the mortgage payments for the houses they would like to purchase. There isn’t much we can do about interest rates, but we can look at the best possible scenario in this situation and make the most rational and beneficial decision for us as buyers in this market.

Once again, focus on the monthly mortgage payment instead of the interest rate. As the saying goes, “Marry the house, date the rate.” You can always refinance later to get a better rate and reduce your monthly payment. This advice applies especially to first-time homebuyers. If you can afford the mortgage payment, don’t wait too long and jump into the market for your search. Owning is better than renting 99% of the time, with benefits such as building equity, appreciation, and tax benefits that you don’t have with renting. There are many great programs, such as down payment and closing cost assistance, available for first-time homebuyers that can provide significant benefits.

If you are not a first-time homebuyer, evaluate the best possible scenario for yourself based on your needs and calculate the equity in your current home. This will be one of the most powerful tools you can use in today’s market, whether you are downsizing or upgrading. Consider buying down the rate with points or opting for an adjustable-rate mortgage (ARM) if it suits your situation. When you find a property you like, act quickly because properties don’t stay on the market for long due to limited inventory.

Also, I would not recommend skipping inspection contingencies due to bidding wars unless it’s a very new or solid property. Skipping inspections can be more costly down the road than you think, and you don’t want to rush in and end up being upset at the end.

The short answer is “no”. The home prices will be keep rising in 2024 but in a slower pace than previous years due to lack of inventory. The inventory is the driving factor for today’s market. Therefore, the homes in great condition sell very quickly with overasking prices because there aren’t that many options out there. This puts many buyers in bidding wars and they end up paying way more than they are supposed to.

You might see some news claiming national and local median home prices are declining. This might be true for some of the markets, but there is catch. The way the median home price is calculated for a specific area depends on the medium value of the homes sold in that particular area. For example: lets say we have 5 homes sold for the prices of 70K, 80K, 90K, 120K and 500K. We drop two higher and two lower prices for the calculation and median home price for this instance would be 90K; however, that does not mean 500k home is sold below its market value or it lost any value. More and more less expensive homes are selling at the moment because of the high interest rates and this situation makes the median home prices decline.

Bottomline, there isn’t a big crash or anything similar to that on the horizon for 2024. The best way to read the market is looking at the data to see what has been sold for what price and when. This is where I come in. Don’t hesitate to reach out for the specific market report so we can evaluate the best scenario for you either if it’s selling or buying.

There are many hesitant buyers out there who like to keep renting and hoping that the interest rates will come down back to 3% – 4% soon, so they can jump back into the market and buy a home. What they often don’t realize is that they will spend more money on rent with a 1 or 2-year lease with no return on investment when compared to owning a home.

Here is the main catch. If you can afford the monthly mortgage and have enough downpayment, then go and buy. Yes, you might be paying more interest than previous years when compared but it is your private space and you build equity in that home besides the tax benefits you will have. We don’t have any control over interest rates but we do on the best decisions we make for our long term goals.

For Example: if you were to rent $2500 Town Home for 2 years lease term, then you would be end up paying $60,000 at the end of that period of time. And that does not come with any tax benefits, appreciation or equity. Plus, there are many programs that can help with your downpayment and closing costs, if you are a first time home buyer which gets easier to get into the game. On the other side, if you don’t have a stable financial situation, don’t have enough savings and have other very specific reasons to wait then hold on until things get more solid from your end first and then you take the step the become a homeowner.

Overall, I would recommend you focus on the monthly mortgage payment that you can afford. The home prices are still appreciating in many markets and limited inventory causing people to bid on the homes with over-asking prices and end up paying more than their market value.

Today we’d like to introduce you to Ertugrul Ertuc.

Hi Ertugrul, please kick things off for us with an introduction to yourself and your story.
I grew up in a small country town in Erzincan, Turkey. Since I was a kid, I have always liked country living and country rides. This would later influence my passion for road-tripping. My family moved to Bursa, a city close to Istanbul, when I was 8. That was a big move considering my family and grandparents had never left our small town before. I went to middle and high school in Bursa, then went to study college in a neighboring town called Sakarya. After finishing college with a civil engineering major in Turkey, I decided to learn English and started searching for options. My family and I thought that America would be a great experience for me, especially after college. So, I decided to give it a shot. Four months after graduation, I found myself in America’s capital, Washington D.C. This was such a big experience for my family and me because none of us, not even one close family member, had ever gone abroad. I had no English, and I did not have a single contact when I came to America back in 2009. It was a start from scratch and the beginning of tough times ahead, which I couldn’t plan or imagine at that time. I was trying to learn English and get familiar with the culture and everything else. I went through such hard times financially and mentally just to be able to stand on my own feet. I was alone in a foreign country without anyone’s help, but I had to work everything out.

It might sound crazy, but I financially had such hardship that I couldn’t even afford a $150 bike for 2 years. I financially just couldn’t. I was trying to get better, but it was challenging with all the circumstances at that time. The thing is that I did not know anyone in the country, not a single contact that could offer a little help. I thought about asking my family for help from Turkey, but I did not want them to struggle financially because of me, especially since my sister was going to college, which was a big expense for them. That is why my lunch was only two apple pies from McDonald’s for quite a long time. And I couldn’t tell them everything I was going through because I knew that would upset them, especially my mom. I knew she would say, just quit and come back home; why do you have to go through all this? The situation put me in a place where I needed such responsibility and dedication to succeed. Since I came over 10,000 Km away from home, I needed to succeed. Failure wasn’t an option. That is why whenever I go to McDonald’s and eat an apple pie now, it tastes like a struggle, hard work, and dedication. I still love the pies, though. But as time passed, I worked harder and harder with lots of effort to learn more to step up.

I started in an office job and applied to get my master’s as my next move. But I only had little savings besides paying the school’s first quarter’s tuition. Finally, my English was at the level that I could do something further. I thought it would get a little easier with knowing the language now, but I ended up working for seven days most of the weeks and trying to take my master classes at the same time to be able to pay for my school and finish on time. I was making little over $2000 monthly despite working seven days a week. This was when I needed to do something different to save more so I could keep paying for my school. Otherwise, I know my master’s might be disrupted without being able to pay. After looking at my expenses, I realized that my biggest expense was The Rent. So, I searched for options that would allow me to cut back on this expense to pay for my school. So then, I started to do subleasing and Airbnb mix. I was living in a place where I was sharing the rent with other roommates instead of living alone and paying a lot. Subleasing and Airbnb were around then, but they were less popular than nowadays. So this made such a big impact on all my finances. I was paying for my school and even saving some extra money after all expenses were paid. This went like that for a while.

Then finally, I got a raise from my work but decided to keep living in the same situation so I could save some money to buy a car, go on country rides, and have adventures on the road when I had free time. Later, it started getting better. I got another raise, plus more vacation days, and finally made a few close friends. Then, it was time for me to make my first Road Trip in the states. I drove my Camaro from Washington, DC, to Key West back and forth with one of my friends, and it was a blast. I drove and passed many country towns and big cities and had many adventures in just 15 days. After my first trip, I told myself I needed to do this again soon because I really enjoyed exploring new towns, having adventures, and meeting new people. So, I got more aggressive in saving to make more road trips by not paying much rent.

Then, I made my second trip to the West Coast, and it was gorgeous, seeing and driving all around the national parks, west coast cities, and small country towns. It was very different than The Key West Trip. Then I repeated the same thing at the end of my West Coast Trip, When will I be driving next? The trip was followed by another trip year after year. A 15-day Solo Trip to Caribbeans in 2016 and a Turkey family visit to my hometown Bursa. Then I met my girlfriend (my wife) in August 2016, and we started making trips together. North Trip to Boston and Niagara Falls at the end of 2016, A cruise trip to Caribbeans, and a Long Northwest Trip to Seattle in 2017. A South Trip to New Orleans and another Turkey trip in 2018. Also, one of the other longest ones, The Great Texas Road Trip in 2019 for 32 days.

In the meantime, I started posting my adventures and stories on my social media channels. It started getting attention at the end of 2018 and kept growing. Check out my Instagram and TikTok for the videos and pictures I shared from all my trips. That was the story behind my trips. It was challenging to manage every aspect of it all the time, but my simple financial planning, which started with subleasing, made this path possible.

My girlfriend and I moved in together. We got married in 2019, and then the covid happened. Covid pushed us a little bit to buy our house earlier than we thought, and we got into that at the right time, right before the real estate market went crazy and housing became less affordable. Then, I ended my subleasing situation. It became obvious that I liked to be in real estate after buying our house and seeing all the processes. I was always interested in real estate since I had a civil engineering background. And I did subleasing for years, as I mentioned earlier. It came out of a simple budgeting situation, but I learned that later, this was a solid investment strategy for those who like to get started in real estate investing. My investment wasn’t serious or big, but it worked out for me and my road trips. So I could make all my road trips with that budget. Then, I got my real estate license in Maryland and started learning all aspects from different angles. Since then, I have learned a lot and met many new people.

Now, I am working as a full-time real estate agent with over 5000 people in my sphere at the heart of the Maryland Real Estate market, Montgomery County. I want to keep sharing my background and story to inspire the people who are currently struggling as I did back in the day. This can be an example for many who have nothing at the beginning but are dedicated to work hard with lots of effort to achieve their American Dream.

Don’t hesitate to follow me on social media if you are interested in Real Estate and love Road Trips. I have been creating social media content for over 5 years now, and I am sharing educational and informative real estate videos that can be really helpful for people who are interested in learning about homeownership and real estate investing. Also, once again, I have 9 states left to go on my list, and I have plans to finish visiting them all in the next couple of years. So, stay with me for more road adventures as well. Hopefully, the best is yet to come.

Alright, so let’s dig a little deeper into the story – has it been an easy path overall, and if not, what were the challenges you’ve had to overcome?
We can talk for long hours about this, but cut to the chase: “Not at all.” I think that I would have become a very different person If I didn’t have to go through all those struggles and hard life experiences. It might be an unusual way of thinking, but now, I appreciate more everything I have because of those hard times. And this always motivates me to strive for more, and it will always be like that. I have previously already shared this with you in my story, but I will mention it again.

I had no English, and I did not have a single contact when I came to America back in 2009. It was a start from scratch and the beginning of very tough times ahead, which I couldn’t plan or imagine at that time. I was trying to learn English and get familiar with the culture and everything else. I went through such hard times financially and mentally just to be able to stand on my own feet. I was alone in a foreign country without anyone’s help, but I had to work everything out.

It might sound crazy, but I financially had such hardship that I couldn’t even afford a $150 bike for 2 years. I financially just couldn’t. I was trying to get better, but it wasn’t easy with all the circumstances at that time. The thing is that I did not know anyone in the country, not a single contact that maybe could offer a little help. I thought about asking my family for help from Turkey, but I did not want them to struggle financially because of me, especially since my sister was going to college, which was a big expense for them.

That is why my lunch was only two apple pies from McDonald’s for quite a long time. And I couldn’t tell them everything I was going through because I knew that would upset them, especially my mom. I knew she would say, just quit and come back home; why do you have to go through all this? The situation put me in a place where I needed such responsibility and dedication to succeed.

Since I came all this way – 10,000 Km away from home – I needed to succeed. Failure wasn’t an option. That is why whenever I go to McDonald’s and eat an apple pie now, it tastes like a struggle, hard work, and dedication. I still love the pies, though. But as time passed, I worked harder and harder with a lot of effort to learn more to step up.

Thanks for sharing that. So, you could tell us a bit more about your business.
Everyone knows me as Ertuce. It is the short version of my name and last name together. I am a full-time Real Estate Agent in Montgomery County, Maryland, A Real Estate Investor, and A Social Media Creator. For real estate inside and out, I specialize in Residential Homes and Investment Properties. With a degree in Civil Engineering, I understand all aspects of home construction. With an MBA in finance, I understand how to evaluate a home’s investment potential. And as an experienced agent, I know what it takes to have a successful transaction, whether buying, selling, or renting. My Buyers appreciate my keen ability to see potential physical problems that may arise in a property. And My Sellers value my skills in promoting their properties on social media. But I understand that real estate is about much more than skill; it’s about bonding with people and helping them reach their goals. I am very dedicated and hard-working to provide the highest level of real estate service available in the area with being honest and helpful. My brand is my personality and my character. I always give my people the most honest, real, and helpful insights so this can help them in the best way in their journeys.

I want our readers to know that I will be happy to help them in the best way possible with my hard work and dedication if they need any assistance with their real estate journey. And I want to tell them, don’t hesitate to follow and support my social media if they are interested in real estate and love road trips. I share useful information on my Instagram, TikTok, and Youtube.

Are there any apps, books, podcasts, blogs, or other resources you think our readers should check?
Yes, definitely, and there are many of them, but let’s talk about a few; let’s start with the books. It is a classic, but everyone should read “Rich Dad Poor Dad” to understand the importance of financial education and real estate investments. Also, another remarkable one is “The Millionaire Next Door,” which talks about wealthy people’s habits and behaviors in America. For the blogs, I love biggerpockets.com. It is really a valuable platform to learn from other investors and connect with them. For the Apps, since I am very active on social media, I love Instagram, TikTok, Facebook, and Youtube apps which I use daily to create content. Also, I use Lightroom, Canva, and iMovie for my photo and video work. Overall, from a social media perspective, I like an honest and true opinion on matters instead of exaggeration and not being realistic.