A successful home buying experience, like any other large project, is all about getting the details right from start to finish. These homebuyer tips will assist you in navigating the process, of buying a home in a seller’s market where competition is crazy. These four tips are
- Qualifying for mortgage
- Getting pre-appoved for a home loan
- Experienced agent on your side
- Being professional in the whole process.
- You can qualify for the lowest possible mortgage rate
According to Realtor.com, home prices have been rising steadily in recent months. They are expected to rise an additional 5.7% this year. Fortunately, record-low mortgage rates can help offset those rising prices — that is if you can snag them.
To make sure you’re getting the best rate possible, take time to boost your credit score first. Resolve any outstanding accounts, pay down your debts and notify credit bureaus about any errors in your credit report. You can also save a larger down payment to help your case.
2. Before you start your home search, get pre-approved
A mortgage pre-approval is non-negotiable in this environment. It can give you a range of prices to work with and can make sellers more likely to choose your offer.
Pre-approved bids are more effective than multiple offers. They indicate that a buyer is ready, willing to buy, and will follow through on the deal.
3. Get in touch with an agent who is experienced
Having a great real estate agent can give you the upper hand in a seller’s market. They can help you speed up your search. They can notify you immediately if a property is available for sale, and can arrange day-of tours or even home tours for you.
Agents can help you make a better offer because of their expertise and negotiation skills.
Experts predict that things will improve towards the end of the year, especially as vaccines become more widespread. This will encourage more sellers on the fence to list their homes, increasing inventory and slowing price growth. Be ready with the right agent.
4. Impress sellers with your professionalism
It’s more than a numbers game to submit a great deal. If you really want to stand out, include an offer letter, and make a personal appeal to the sellers (you can even include a photo). You can waive a few contingencies, or make a bigger earnest money deposit or be flexible about your closing date.
The bottom line
It might be a seller’s market, but finding an affordable home is still possible. It may not be as difficult to achieve the American Dream if you are able to prepare your finances and credit, get preapproved for your mortgage, and hire a great agent.
Negou Seid is a Software Engineer, Business owner and loves writing useful blogs.