Tips For First-Time Home Buyers
We are in the definition of a seller’s market. Homes are in high demand because of historically low mortgage rates. At the same time, many are refusing to sell because they are seeing their home values skyrocket. This is leading to a difficult market for those who are interested in buying a home. However, difficult is not the same as impossible. While it is difficult to buy a home in today’s real estate market, it is still very possible. The key to navigating these waters as a home buyer is patience. The team at Peoples Choice Mortgage is here to explain to you why patience is key to buying a home.
Mortgage Rates and Home Inventory
There is plenty of demand from buyers, but it is hard to buy a home if there are very few to purchase. The real estate market is in a historic period. Mortgage rates have hovered near historic lows. At the same time, inventory of available houses has also been at historic lows. Some were expecting the inventory of available homes for sale to increase in spring, but that did not happen. In turn, home sales have stagnated slightly. After all, it is difficult to buy a home if there are not many for sale. Many homebuyers are turning to newly built houses to move into the home of their dreams. Instead of waiting on someone to decide to sell, many homebuyers are turning to new construction. Newly constructed homes now account for over one-quarter of all home purchases.
How to Have Patience and Buy a Home in Today’s Market
Patience is key when buying a home. Going into the process could be difficult and might take a while. It is useful to have the patience to reduce anxiety and help you achieve your goal. Here are some helpful tips to maintain patience and be successful in your journey to buy the home of your dreams.
Get Prequalified for a Mortgage
It is important to have a realistic budget when trying to buy a new home. Part of that budget includes what type of financing you can get for a home loan. Many think that you should find a home before you get prequalified for a mortgage, but that is not true. Getting prequalified for a mortgage will help set your budget. It will also help you know what your price range is when finding a home. Plus, getting prequalified for a mortgage will let sellers know that you are serious about buying their home. This will set you apart from other buyers in a tough market.
Prepare Yourself for Bidding Wars
It would be nice if you would be the only buyer putting in an offer for the home you want to purchase. However, that is not likely to happen. In today’s market, bidding wars are the norm and not the outlier. Over 60% of home offers in February faced bidding wars. Offers are considered a part of a bidding war if they have more than one person competing or bidding. Preparing for a bidding war will help you psychologically. It will reduce stress and keep you in the mindset that you might not get a house just because you put a bid on it. Bidding wars are now on a slow decline, but you should still be ready for them.
Craft the Perfect Offer to Buy a Home
Crafting the perfect offer to a home seller is key for bidding wars. It will help you go a long way toward winning and buying your dream home. You want to make sure that the offer is fair to the seller and adequately reflects your real estate market. Your real estate market is not just made up of the neighborhood in which you are buying. It also takes into account comparable houses to the one you are buying.
Working with an Expert Realtor
Not all realtors are created equal. You want one who is experienced and has deep knowledge about your real estate market. This will help them find the perfect home for their needs and budget. A realty pro will also help you craft the perfect bid to land the house of your dreams. Today’s market is very difficult for buyers. You want a realtor who is willing to work day and night to make your dream of buying a home a reality.
Final Thoughts
Today’s real estate market is difficult for home buyers, with COVID-19 changing how we buy homes. Homes available for purchase are limited and there are a lot more buyers than homes on the market. Remember, difficult is not the same as impossible. It just means that you cannot expect to be able to buy a house just because you put in an offer. You will need the patience to succeed in this market. Do not fall in love with every house you see. Instead, find a range of home qualities you would be happy to buy.
The biggest thing that will help you buy a home in an extreme sellers market other than patience is an incredible realtor. What this boils down to is that you want someone who is going to work for you and who knows the market. For many, buying a home is the largest purchase you will make in your entire life. Make sure you are working with someone you trust and you believe has your interests at heart. Are you interested in buying a home? You want someone who will fight to get you the home of your dreams, so contact us! The team at Peoples Choice Mortgage is here to help turn your dream of buying a home into a reality.
