If you’re looking for a home right now, the competitive market can be intimidating. Just how competitive is it? As of January 2021, there were more real estate agents than available homes in the U.S. 🤯
To help those of you on the hunt, AllSouth’s VP of Lending, Bryce Boyd, recently shared these 7 tips for home-buying success in the current market:
1. Shop around for the best financing option.
○ Mortgage rates are at a historic low right now, making it more affordable to purchase a home.
○ #BryceAdvice: “Before you do anything, shop around for the best interest rate and mortgage loan term. All mortgages are not created equal, so find the one that makes the most financial sense for you and your family.”
2. Get pre-approved.
○ This will tell you how much you can borrow, and a pre-approval letter can show the real estate agent + seller you’re a serious buyer. (Bonus: Most financial institutions let you get pre-approved online.)
○ #BryceAdvice: “Houses are selling quickly in today’s market, and you have to be ready to move when the opportunity comes. Having a pre-approval letter is a good indication to the real estate agent that you’re ready to buy a home.”
3. Hire an experienced real estate agent.
○ Hire an agent you can trust + who has a proven track record. They’ll know when new properties come on the market — important when offers are being made the same day a home is listed. ⌛
4. Be flexible.
○ In this competitive market, you may have to compromise on your must-haves.
○ #BryceAdvice: “Getting a home inspection is always important. However, you may have to be flexible in addressing some issues found during the inspection. For example, don’t let a broken lock or window be a deal-breaker.”
5. Be ready for a bidding war.
○ It’s possible there could be multiple offers on a home at the same time + other buyers willing to pay cash or more than the asking price.
○ #BryceAdvice: “There’s very little room for negotiating (if any) compared to previous years. Not making your best offer could cost you the home you really want.”
6. Make yourself stand out.
○ A seller’s connection with their home may be strong — writing a heartfelt letter expressing your excitement about taking care of the home may help the seller choose your offer over others. 💌
7. Consider delaying your purchase.
○ It’s predicted the housing market will be more favorable to buyers in the second half of the year as inventory increases. If you don’t have an immediate need to buy a home or aren’t finding what you want, it might be worth waiting.