The era of soaring house prices and bidding wars may not be over yet. Rising mortgage rates are expected to eventually ease demand, Insufficient housing inventory For today’s homebuyers, we continue to raise challenges.
According to one realtor, future buyers may need to abandon their preconceptions about buying a home in order to compete in this seller’s market.
“Buying a home is different than it used to be, and there are some new rules for buying a home,” said Sam Salzwedel, a Tucson-based realtor in Arizona. I recently told Realtor.com..
Continue reading to see Salzwedel’s new rules for buying a home in today’s competitive real estate market.And if you’re ready to start the home buying process, you can: Visit Credible to compare mortgage rates Free without affecting your credit score.
1. Get mortgage loans in order before shopping
→ Old rule: “Find your dream home and complete your mortgage paperwork.”
→ New rule: “Please lock in your mortgage before you start your search.”
If you’ve found a home you love, but don’t have a mortgage pre-approval, it may be too late to make an offer. This is because home sales are growing rapidly and spending less time in the market than ever before.according to Realtor.com dataThe listed homes sold 10 days earlier in March this year than at the same time last year.
“The house will probably be gone by the time you get a loan,” Salzwedel said.
As soon as you’re ready to start shopping for your home, it’s time to secure your mortgage financing. Being prepared with a pre-approval letter from the mortgage lender informs the seller that you are ready to make a purchase.You can do it Start the mortgage process Reliable.
2. Find the homes listed under Ideal Selling Price
→ Old rule: “Buy a house that you can afford.”
→ New rule: “Buy a house at a cheaper price than you can buy.”
Despite signs of chilling demand as mortgage rates rise, homes continue to sell far more than they are on the list.According to the company, about half of the homes sold above the list price in March Real estate agent Redfin..
“Everything you see is likely to sell above the list price, so it’s a good idea to leave room for it at a price higher than the list price,” says Salzwedel.
Do some research to determine how many homes you can buy, then ask your realtor to show you homes that are below your maximum purchase price.You can also Use Credible’s Mortgage Calculator Estimate monthly payments.
3. Get ready to make an offer on the same day you tour the house
→ Old rule: “After visiting the property, it will take a day or two to decide whether or not to make an offer.”
→ New rule: “Once you find something you like, put together a smart and competitive offer as soon as possible.”
Buying a home is probably the biggest purchase you make in your life and you may end up living in the house next to you for more than a decade. Buying a home is a very important milestone, so it’s important not to make a quick decision.
However, as homes are getting less and less time on the market, homebuyers today may not have the luxury of taking days to ponder things.To ensure You are buying the right house It provides realtors as well as homes with a detailed list of essentials and transaction offenders. If possible, keep your full-scale deposits low and don’t abandon your home inspection.
4. Send the most competitive offer first
→ Old rule: “Offer below the asking price and wait for the seller to counter your bid.”
→ New rule: “Put your big number there from the beginning.”
and Competitive real estate market, Sellers may receive multiple offers within a few days of listing the property for sale. If you offer below the list price, you may move on to the next offer.
“Sellers haven’t made many opposition offers,” Salzwedel said. “Buyers often offer more than the seller expected, so they don’t have to.”
Some aspiring buyers may even offer cash to cover the difference if the property does not value the agreed purchase price.But for many First Home BuyerThe prospect of paying more money in advance (potentially worth tens of thousands of dollars) may not be feasible.
Discuss your options with your realtor and put them in The most competitive offer For your situation without leaving your financial comfort zone. Rather than offering more than the appraisal value of a home, we may be able to set ourselves apart from other proposals by flexibly responding to deadlines.
5. Don’t lose hope if your offer isn’t accepted
→ Old rule: “Expect to buy a house after submitting one or two offers.”
→ New rule: “It can be rejected many times.”
It may be disappointing to put together the best offers for your dream home High price by cash buyer Or those who are willing to abandon inspections and evaluations. At the end of the day you are making a purchase. Sellers usually choose the offer that is most economically beneficial to them, even if it is not yours.
“The new normal is dealing with rejection,” Salzwedel said.
This does not mean that you have to settle for less than you want. Instead, it means you may have to be patient to find the perfect home for you. And if you’re looking for the best mortgage offer possible, it’s important to shop with multiple lenders. The table below allows you to compare the current interest rates for all creditors. Visit Credible to see your mortgage offer To suit you.
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