With Spring in the horizon, buyers should expect stiff
competition in markets with low inventory levels. With the amount of
buyers we expect this spring season buyers need to be prepared when they search
for homes.
Home prices continue to recover and interest rates remain at
near-record lows, some houses are receiving multiple offers and to win the bid,
buyers need to stand out from the crowd.
Since markets are moving fast, experts recommend sellers have
their loan pre-approved and down payment ready before starting their search.
Multiple bids are becoming the norm, so be ready to compete and
do your homework to seal the deal. Be reasonable without being difficult
because until an offer is signed, sealed and delivered, other buyers can bid on
the property and may walk away with it.
To help you become a homeowner in this competitive market,
consider the following tips:
- Bring down your debt to income ration which is critical for a
loan pre-approval
- Know your affordability and be ready to place an offer.
If you can only afford a $300,000 home do not look over that amount.
Look at the area's past sales, if homes are selling at 95% of listing
price, do not think you will get it for 85% of listing price.
- If you find a home you really fall in love with, put in an
offer as soon as you can. Time is not on your side.
- The more cash you have, the more appealing you are as a buyer.
Putting 20% or more down makes you look more financially stable and gives
sellers comfort that you’ll qualify for a mortgage.
- Get pre-approved before searching. Getting pre-qualified
for a mortgage gives a ballpark for what you can afford to buy and will
streamline your search process.
- If you’re financing your house with a mortgage, have a
pre-approval letter with you and if you’re paying cash, have proof of funds
that shows you’re good for it.
- Making your offer contingent on you selling your house first
will make you a less appealing buyer. If you need to sell your house before
buying a new one, then sell your home first and rent or move in with family or
friends while you look for your new home.
- Make it known that you will be flexible with closing dates.
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