Did you know a lot of Americans think that buying a house is one of the most stressful life events? If you want some home buying tips, we can help.
In this guide, we’ll go over real estate tips for buyers in a seller’s market.
Want to learn more? Keep reading.
1. Hire a Reputable Real Estate Agent
Most agents are eager to help you find a house. Yet, you want to make sure you find someone with a track record of success and who’s reputable.
Don’t settle for a random agent. Ask your network for recommendations. You’ll want to find an agent who’s suited for your needs.
Sit down with at least three agents. Ask them questions about their experience. If you found the agent online, see if you can speak with a reference.
2. Get a Pre-Approval
There’s a difference between a buyer who has a pre-approved mortgage and one who’s being pre-qualified. Anyone can get pre-qualified for a loan.
Being pre-qualified means that the lender decided you are likely to get approved for a loan. You will get an amount that’s based on your financial situation.
Yet, a pre-approval means the lender checked your finances and told you how much they’d lend to you.
Being pre-approved will save you time. You won’t end up looking at houses out of your price range. You’ll also have the opportunity to get the best interest rates.
Research and learn about processing fees, junk fees, and more hidden costs in the loan.
3. Consider Smaller Houses
People often get drawn to the most elegant and biggest houses in the neighborhood. A bigger house isn’t always the best choice.
The largest house will limit the number of potential buyers down the road if you want to re-sell it.
Also, your house will only go up in value if the homes around you do as well.
4. Watch Out for Hidden Costs
There’s a difference between homeownership and renting. You’ll need to deal with the sleeper costs.
People focus on the mortgage payment. Yet, you’ll also need to be aware of utilities, homeowner association dues, and property taxes.
You’ll need to prepare for maintenance jobs, repairs, and increases in property tax. Budget for these costs, so you don’t lose your home.
5. Don’t Choose a House Based on Feelings
You don’t want to go into buying a house and base your decision on emotions.
If you fall in love with something, you could make the wrong financial decision. Going with your instinct means you get a decent house for a reasonable price.
Going with your emotions means you’re focusing on the aesthetic of the home. Buying a house is an investment. Try to use wisdom when considering what one to buy.
6. Hire a Home Inspector
You’ll spend up to 200 dollars for a home inspector to come in and check the house.
If you don’t get an inspector, you might not find out about issues with the house. In the future, you might need to spend a lot of money on repairs.
A home inspector will give you information to help you decide if it’s a good house or not to buy. If the inspector finds issues, you can use those issues as a bargaining tool to lower the cost.
Spend money upfront and hire an inspector.
7. How to Come up With an Offer
Consider two main factors when coming up with your bid. Think about how much you believe the property is worth and how much you can afford.
Make sure your opening bid is reasonable. People think they should go low the first time they bid. Your offer will also depend on the market. See what houses are going for in that particular neighborhood.
Get an average price per square foot. See if the neighbors are going to put up a new addition to their home.
8. Check Out the Neighborhood
Before buying a house, you’ll want to check out the neighborhood. Take a drive through the area at night, in the morning, and around lunchtime.
If you need to commute, make sure it’s something you can deal with daily. How far are the grocery store and hospital?
Do you have kids? Are the schools in the neighborhood decent?
9. Don’t Wait Too Long
In a seller’s market, you don’t want to make the mistake of taking too long to decide. If you need to see everything and know everything before deciding, you might want to wait.
If you find a home you like, make sure you move fast. Assess and analyze later. If the house ends up having many problems, you can cancel within the time specified in the contract.
Learn more about the house purchase agreement.
10. Expect a Bidding War
People should expect a bidding war in a seller’s market. Look for homes under your budget. This way, you can make bids over the asking price and not break your budget.
Make sure you’re working with a seasoned real estate agent. You want someone who has experience with bidding wars.
An agent can help you navigate this scenario. You also can feel confident, knowing you won’t end up offering more than you can afford.
Now You Have Some Real Estate Tips for Buyers
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