Fueled by record-low mortgage rates, surging buyer demand, and low inventory, there’s no denying that today’s real estate market in most places can be characterized as a strong seller’s market. If you are looking to buy a home, the fierce competition and soaring prices can be discouraging—but with some strategic planning, purchasing the home of your dreams is still possible today. Here are a few tips - Have a clear idea of your “non-negotiables”—as well as where you are willing to compromise. For example, develop a realistic concept of what you can afford to spend, how large your new home needs to be, the type of area you’d be willing to live in, and how much money you’ll have leftover to make any improvements necessary. Being honest with yourself and getting clear on the wishlist for your dream home will make it easier to move swiftly—and hopefully, beat out the competition—when you find something that meets your qualifications. - Get pre-approved for a mortgage. In a seller’s market as hot as the current one, a mortgage pre-approval is virtually a must-have for buyers. Not only can a pre-approval help give you a realistic understanding of your price range, but it will show sellers that you are serious and qualified—which means it is less likely that the deal could fall through if they accept your offer. - Get a pre-inspection. When the market is less competitive, it’s common for buyers to include contingencies in their offers based on problems revealed by the inspection. In today’s market, however, sellers are unlikely to agree to fix minor issues, so inspection contingencies may not be a realistic option. Getting an inspection before you make an offer will help steer you away from homes that have significant problems, and can expedite the closing process if you decide to go through with the offer. |
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Sources: nerdwallet.com & forbes.com
