How To Buy A Home In An Extreme Seller’s Market
Home-buying activity has been hot over the past few years, and it will likely just get hotter as the spring buying season approaches.
Even as home prices and mortgage rates steadily rise, buyers are not sitting out. And the housing supply is still severely lagging the demand for homes.
Hello, my name is Chris with Novus Home Mortgage and I’m sharing buying strategies you can use in this competitive market.
It’s crucial to sharpen your home-buying tools if you want to compete successfully. So here are the top five buying strategies.
NUMBER ONE: GET A MORTGAGE PRE-APPROVAL
The number one thing you need to do before going to look at homes is getting a mortgage preapproval.
A pre-approval shows sellers a lender has verified your finances and creditworthiness and you’re ready to move.
You can take that a step further and get a certified credit approval from us. This type of pre-approval is as good as cash and gives you a serious advantage to other buyers.
NUMBER TWO: LOOK FOR HOMES UNDER YOUR BUDGET
Tales of multiple—sometimes dozens— of bidders —on one home are not unusual. This is the reality of housing markets across the U.S. For buyers, that means you probably shouldn’t look for homes at the top of your budget, as there’s a chance someone else could outbid you.
If you’re serious about buying a home now, a good strategy is to search for homes below your spending limit. This way you have room to bid up without dipping into savings or going outside of your target price point.
NUMBER THREE: GIVE YOURSELF EXTRA TIME
It’s not uncommon for first-time homebuyers to borrow money to make a down payment. However, this should be factored into your timeline. Talk to your lender about any funds you expect to receive so they can walk you through the process. For example, if someone is giving you money for the down payment, they will have to write a gift letter explaining that you don’t have to repay the money.
NUMBER FOUR: GET THE BEST REAL ESTATE AGENT POSSIBLE
An excellent real estate agent is every buyer’s secret weapon. They’re not only great negotiators and have a solid understanding of the neighborhood you’re interested in, but they also have terrific connections, which will benefit you.
If you’re looking for a good realtor, we can connect you. We have several we work closely with and can give you guidance on.
NUMBER FIVE: EXPAND YOUR SEARCH
The most sought-after neighborhoods usually come with the highest price tag. If you have your heart set on owning a home and living in a specific neighborhood, but the price is out of your budget, consider expanding your search! There may be other areas near by that you’ll like just as much or even better.
Start by identifying what you like about your dream neighborhood. Are there local restaurants and businesses nearby? Are there green spaces? Is it near public transportation? Whatever features you value, try to find them in areas you might not have explored before.
Finding a home in an extreme market can be overwhelming, but when you put together a talented team of a professional real estate agent, combined with a top-notch mortgage lender, you will make it much easier to accomplish your goal!
