It’s no secret that many prospective homebuyers are finding the current real estate market challenging. This has resulted in a robust market where sellers are seeing advancing home sales prices and multiple offers. While competition is fierce, clearly for sellers to sell, they need buyers. If your goal is to find a new home this year, there are a couple ways you can maximize your ability to have your offer accepted. Even with the slight rise in interest rates over the past few months, buyers are still entering the buying market and buyers’ offers are still competitive. It seems that renters and millennials are currently the largest buyers on the market. Here are several ways homebuyers can win in today’s market:
- Act Early – There are a couple reasons why home buyers should continue to keep looking. While conventional wisdom may suggest that the increase in mortgage rates will slow buyers, there is still a great need and low inventory. Interest rates may continue to rise slightly through 2023, so acting now can save home buyers thousands of dollars over a 30-year term.
- Get Early Pre-Approval – Being ready to write an offer right away is key to being competitive against other buyers. It is imperative to seek out a mortgage company and get your pre-approval before starting to home shop.
- Buy Now and Move Later – The rapid pace of the current market affects not only buyers but sellers as well. In a typical market, sellers often have weeks or months to find their replacement property. Buyers can sweeten their offer by asking about the sellers needs and allowing them extra time to move, offering to close quickly but renting to the sellers for 2-3 months to allow them time to find their new home. The bottom line is that home loan rates and home prices will likely continue to advance throughout 2022. Potential homebuyers who move quickly can maximize their buying power and ability to win the home.
Article contributed by:
Margie Groy, REALTOR®