Buying a home today is not the same as it used to be. With the pandemic throwing the economy for a loop and interest rates climbing, things are getting intense.
Read more to learn about tips and tricks that will refresh your mind and guide you through today’s homebuying challenges.
Get pre-approved before home shopping
In the past, getting pre-approved for a loan was something you could tackle after finding the home of your dreams.
Although if you try this today, it could stall the momentum before you’ve even started. It’s essential to have your ducks in a row before you make an offer.
Houses are going under contract within days and sometimes even hours. So, it’s smart to speak with a lender and learn what you can afford before visiting a property.
Putting this pre-approval process off could lead to your dream home passing by. After all, a pre-approval letter tells you and the seller how much the mortgage company is willing to loan you.
Shop for homes below what you can afford
Traditionally, once you have a pre-approval letter in hand, that’s the amount you’d use to set your budget.
But today you may want to set your budget a little differently. Homes are selling for more than the asking price and buyers are ending up in bidding wars.
Looking at properties under your budget will leave you with room to submit a competitive offer that goes above the asking price.
If you love it, act fast
Buying a home is a big decision. It’s normal to want to take time to weigh the pros and cons before submitting an offer.
But if you don’t act fast, your dream home could be snatched by another buyer within hours of visiting the property.
However, don’t feel pressured to throw money at the first home that looks OK. You should tour enough homes to understand what you want and what your money can buy.
This way, you can strike with confidence when you’ve found the one.
Think big from the start
With inventory at a record low, multiple buyers are competing for the same few properties. Therefore, going back and forth with a seller until you’ve reached an agreement is rare.
Since sellers are receiving multiple full-price offers, you may not get the opportunity to counteroffer if you come in too low at first.
You need to put together a strong offer that stands out in the crowd. Be prepared to make your best and final offer in the beginning.
However, price isn’t the only factor that matters when submitting an offer. It’s also good to pinpoint the negotiation points that are important to the seller.
From there, you can strategize your offer to match the seller’s needs.
Be prepared to try again and again
Even when you put your best foot forward, it’s not always enough to persuade the seller. Be prepared to go through the offer-writing process more than once.
Submitting an offer in today’s market can be a roller coaster ride. It’s easy to get frustrated but stay patient and the best will come.
