If you are actively searching for a new home, you know that low inventory of homes for sale has made things difficult for buyers. In a “Seller’s Market” there are not many homes for sale, and when a new home comes on the market, it is met with multiple offers. Not only do these homes sell within days, but often over asking price.
If you are a buyer in this market, you may feel overwhelmed. However, with a solid strategy, you can still find your dream home, even when inventory is low.
- One Step at a Time: Home buying is not a one-time moment, but a series of steps. Make decisions as they come, as you move through the process; make sure each discovery is one you can live with. Your REALTOR should provide you with a Home Purchase Process to help with the buying process.
- Start with a Lender: Understand your financial possession and lending options before looking for a new home. There is nothing more disappointing than finding the “home of your dreams,” and then discovering that you cannot qualify for the loan to buy it. Most buyers have an “idea” of how much they can afford to buy, but a lender can tell you what mortgage you can qualify for and the monthly payments with principal, interest, and taxes. You will also receive a Pre-approval letter from your lender so the seller will feel comfortable accepting your offer when submitted.
- Write a Competitive Offer: You don’t want to over-pay for a new home, but if the property is priced at Market Value and you want it, offer that amount. If you don’t, the next buyer will.
- Keep Contingencies to a Minimum: Stick to the basics: home inspection, well and septic, attorney approval, and finance approval. If you are buying with FHA financing, you may ask for 3% towards your closing cost, and if you have a home to sell, you may include a 72-hour contingency.
- Write a Clean Offer: Make it easy for the sellers to say “Yes!”.
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