This summer is going to be difficult for homebuyers. The property market has been on fire for over a year, and house buying obstacles persist even as the coronavirus outbreak fades.
If you're looking to buy a house this summer, these strategies will help you get a better deal.
1. Get pre-approved for a mortgage before you start shopping
To be ready to make an offer on a home in today’s market, you must get pre-approved for a mortgage. Including a pre-approval letter when you submit an offer on a house shows the seller that you’re a serious and qualified buyer.
2. Team up with the right lender and agent
Houses are flying off shelves. Working with a loan officer who is available on nights and weekends is especially important. In addition, finding a real estate professional who has good relationships with other agents in your market is critical.
3. Be prepared to offer asking price — or higher
For the first time, more than half of U.S. homes sold above the asking price in May, according to Redfin. The average home sold for 2.2% above its listing price. Therefore, the best approach for buyers is to shop for properties that are listed at prices below the top of your budget so that you have room to offer above the asking price for the right home.
4. Write a “clean” home offer
In a more balanced market, it is common for real estate contracts to include so-called contingencies, which layout conditions that must be met before a sale can be completed and allow a buyer to walk away if something goes wrong. For example, a home inspection contingency allows buyers to ask sellers to make repairs if they uncover problems during a property inspection. A financing contingency requires that the buyer’s mortgage get approved before they’re obligated to close on the property.
But with many sellers getting flooded with offers right now, buyers have less room to require contingencies. As a result, sellers prefer a so-called “clean” offer that waives contingencies.
5. Don’t get discouraged
With such a limited supply, you may have to bid on a lot of homes before you have an offer accepted. Don’t let a few rejections derail your home search.
If you're planning to buy a house this summer, let's work together. Just send me a message.