The real estate market is a fickle beast, but right now, it’s a seller’s dream! If you’re thinking about buying any time soon, pay attention to these 5 tips!
Making the decision to buy a house isn’t something you can do all willy-nilly. You need to be 100% certain that this will be a good move for you and your family. Of course, you may not have a choice and have to buy a house for one reason or another.
Regardless of the why, it’s important that you know what the housing market is like in your area. Homelight released their Q3 2020 survey, and 92% of agents report they are experiencing a hot seller’s market.
As daunting as this may seem, we have a few tips that’ll get you prepared for this competitive market.
1. Be informed about your desired location
You might have an idea of where you’d like to buy a house, but you cannot dive in head first without knowing anything about said area. You have to take your time and learn as much as you can, especially if you’re moving to a different part of the state or a new state all together.
Some things you’ll want to find out include:
What is the cost of living in the area
What are the job prospects like
How does the school district rate in the state
Is there access to public transportation
How far will your budget go (how much house can you afford)
2. Choose a lender and get pre-approved
There are countless lenders you can try to get a mortgage with, but you don’t want to apply for a mortgage with just anyone. You’ll want to know what type of loan is best for your situation, choose the term of your loan, whether you want a fixed rate or adjustable rate loan, and compare rates from one lender to the next.
Once you find a lender that you’re comfortable working with, you will want to get a pre-approval letter. This letter will let your agent know how much money you’re able to borrow and find homes that fit your budget. It also can be used as a bargaining chip when submitting an offer, as it signals to the seller that you’re serious and will have the funds to close.
3. Hire a top-rated real estate agent from the area
It’s not uncommon to find homes that are for-sale-by-owner, but unless you’re a savvy real estate investor, a real estate agent is going to be your right hand man in the homebuying process. You’ll want to do your homework and find an agent who is very familiar with the area, who has a proven sales history, and has a good reputation within the community. You could go one step further and look at an agent’s ratings on sites like Yelp, Angie’s List, or Homelight.
4. Don’t low-ball! Come in with a strong offer
You may be a whiz at getting someone to lower their price on something, in a strong seller’s market, it’s not going to work, especially considering 87% of surveyed agents say inventory in their area is lower than usual. The truth of the matter is, there are more buyers entering the market than there are listings.
A low-ball offer will probably get ignored and you’ll lose the house. So, if you want to get your offer accepted, you need to make it an offer that at least is at asking price. If you are serious about making a lower offer, you can sweeten the deal by making a clean offer instead. That means you won’t ask the seller to pitch in with your closing costs, you won’t have any contingencies, nor will you ask them to make any repairs.
5. Consider making offer sight unseen
This is a tricky move because you never really know what you’re going to get. The house may look move-in ready, but there could be some issues lying under the surface. If you’re the type of person who likes to take a gamble and intends on overhauling the house anyway, perhaps this is the way to go.
Buying in a hot seller’s market can be tricky, but these tips and working with an experienced real estate agent will get you through the process with little to no stress.
