As stated by Keeping Current Matters, it is very important to keep up to date on how increasing mortgage rates can affect your payment:Mortgage rates have increased significantly in recent
A Window Of Opportunity For Homebuyers Get Your Dream Home Before Prices Rise
Dated: August 2 2022
In a sellers’ market, it can be challenging for buyers to find their dream home and negotiate a fair price. However, there is good news: There is also a buyers’ market within the sellers’ market. And this gives homebuyers a window of opportunity to get the home they want before prices rise even further. We see this dynamic playing out in most housing markets. Across the country, inventory of homes for sale is low and demand is high—ultimately driving up prices and creating an environment where inventory is scarce and competition among buyers is fierce. This creates a perfect storm for homebuyers: limited supply + high demand + soaring prices = A great time to buy! Here are three strategies that can give you an edge in this type of real estate market.
Be prepared to negotiate—even when you find your dream home
When you’re buying a home, you should always be prepared to negotiate. This is especially true when you find your dream home, since negotiating is one way to keep prices from rising even further. The good news is that in recent years, the volume of cash home sales has steadily increased. This is primarily because more and more homebuyers are finding ways to negotiate a lower price due to the tight supply of listings. This means that more buyers are being able to walk away with a lower price and a smile on their face. If you’re a homebuyer and you’ve found the home of your dreams, be prepared to negotiate. Start by making an offer that is 5% to 10% less than the asking price. This can help you establish a lower price, while still showing the seller that you are a serious buyer.
Don’t settle for a price that isn’t fair
Buyers are sometimes tempted to accept a lower price because they don’t want to lose the house of their dreams. However, it is important to remember that every seller has a bottom line. Accepting a lower price than what you feel is fair can impact your finances for years to come. You may have a mortgage for 30 years, but the seller has the equity in the house for 15 or 20 years—so they’re the one who actually has the last laugh. It’s important to remember that even if you are offered a lower price, the seller is still making money on their home. After all, a sale is a sale, no matter the price. Before you settle for a lower price, make sure it’s a price you can afford. Even if you are offered a discount, that doesn’t mean you should accept it. Instead, do your research and find out what the home is really worth. This will give you a better idea of what you should pay for the home.
Get your ducks in a row before you make an offer
The home buying process can be stressful, especially when you’re in a sellers’ market. However, there are a few things you can do to make the process a little easier. First, make sure you have pre-approved for a mortgage. This will let the seller know that you are a serious buyer. You can also hire a real estate agent to help you navigate the process. If you have a real estate agent, let them know what your budget is, the number of bedrooms and bathrooms you are looking for, and the type of neighborhood you are interested in. This will help your agent find the best homes that fit your needs.
Know your mortgage options before making an offer
When you make an offer on a home, the seller will review it and either accept or reject it. If you are making an all-cash offer, this process is straightforward. However, if you are making an offer using a mortgage, the seller (the bank) may ask you to provide proof of funds. This means that they want to see documentation to prove you have the funds to close the deal. While you can provide proof of funds by providing a cashier’s check, you may also be able to use your existing mortgage, provided you have the right loan type.
No matter what type of real estate market you are in, it is important to stay informed. This will help you make better decisions and get the home you want at a price you can afford. A real estate market that is skewed towards sellers can be challenging for buyers, but it is also an opportunity for them to get a great deal because sellers are motivated to sell their homes. By being prepared to negotiate, not settling for a price that isn’t fair, and getting your ducks in a row before you make an offer, buyers can increase their chances of getting their dream home at a price they can afford.
Nick is the Founder and CEO of Black Castle Properties. He is also a Licensed Real Estate Broker with over 9 years of experience and an extensive background in sales. He understands the complexities o....
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