Should you buy a home right now?
There’s no doubt that we’re living in a seller’s housing market right now. Inventory is low, demand is high, and prices are rising. Buying (or even finding) a home today is a challenge, to say the least.
However, if you’re interested in buying a home this year, it’s not impossible! Here are a few tips to use:
- Qualify for the lowest mortgage rate possible.
Because the prices of homes have been rising quickly recently, record-breaking low mortgage rates can help offset the growing prices (if you can get them).
Take time to boost your credit score first in order to make sure you’re getting the best rate.
- Get pre-approved BEFORE you begin your search.
Getting a mortgage pre-approval is an absolute must right now. It will make sellers more likely to choose your offer and also give you a good price range to work with.
If and when a seller has multiple offers, pre-approved ones will stand out. It shows that the buyer is prepared and ready to buy, and will be more likely to follow through with the deal.
- Consider buying when the market shifts.
Many experts are predicting that the market will improve in favor of the buyer toward the end of the year (and when vaccines are more widely spread).
“The housing market in 2021 will be much more hospitable for buyers as an increased number of existing sellers and ramp-up in new construction restore some bargaining power for buyers, especially in the second half of the year.” -Dannielle Hale, Realtor.com
source: Realtor.com
- Choose to work with an agent that is experienced.
They will speed up your search by alerting you ASAP when a suitable property hits the market, schedule day-of tours (or tour homes for you), and they can find up-and-coming listings that aren’t quite public yet.
Agents who have experience and advanced negotiation skills can also help you submit a more competitive offer if/when you find a home you love.
- Impress sellers in every way you can.
Stand out by including an offer letter to the sellers (you can even include a photo). Some other things that help are a larger earnest money deposit, waiving a contingency or two, and being flexible with the closing date.
Finding an affordable home is still possible in a seller’s market. Spend time prepping your credit and finances, get pre-approved for your mortgage, and work a great agent, and make it happen!
