When you're in the market for a mortgage, it's crucial to find a lender you…
The current real estate market looks different from how it’s played out in the past couple of years. The pandemic caused many people to rethink their housing needs, which resulted in a record number of buyers looking for bigger and better living spaces. Combined with supply chain issues that halted home construction, the market reality became higher home prices, lower inventory, and buyer bidding wars.
Today, home prices have remained stable, inventory is starting to rise, and so are mortgage loan rates. For buyers who were previously on the fence, now could be an excellent time to reenter the real estate market and purchase your dream home.
If you have a down payment sitting in your savings account and your credit score is where it needs to be, you may be financially ready to buy a house. In fact, if you are a first-time home buyer, purchasing and owning a home now could be the best financial move you can make, considering that U.S. rents are 23% higher in 2022 than they were in 2019.
So what’s the secret to finding a home you love and buying a home in today’s housing market? New Way Mortgage shares our top insider tip below, plus some other helpful hints on ensuring that your offer becomes the winning bid.
Home Buyer Tip: Seek Out Overpriced Properties
Over the past two years, potential buyers would, not surprisingly, skip over any overpriced property. But consider this: Other buyers are also passing over these properties, and with less buyer interest, these homes are sitting on the market with no offers. So what’s a savvy buyer to do? Well, we suggest it’s worth taking a look at that home after all, because it might end up costing a lot less than you think.
Sellers whose homes are sitting on the market now still think it’s 2021—that they can ask any price they want for their property, and somebody out there will pay it. But a lot has changed since last year, and that’s why their overpriced home is not selling. The odds are in your favor that if a home is sitting on the market and not moving, it may simply be priced too high.
So when you’re house shopping and see something you like that is on the high end of your price range, look at how long it’s been on the market. Suppose it has been listed for a while. In that case, the seller may be more willing to work with you on the sale price, offer seller concessions (such as covering your closing costs), pay for repairs, and accept contingencies that would make the transaction go more smoothly.
That’s our top tip for buyers to make the current housing market work in your favor. Aaron Clowes of New Way Mortgage explains the appeal of overpriced properties in this quick video.
Keep reading for additional pointers to keep in mind when looking for a property to purchase.
Get Your Mortgage Pre-Approval First
Even with the transition we’re seeing in today’s market, you don’t want to make getting pre-approved for a mortgage an afterthought. Homes are still moving off the market pretty quickly, so make sure you have your ducks in a row before you even start your property search. This means making securing a mortgage pre-approval your number one priority.
If you put off the loan pre-approval process, the house you want can quickly be passed off to another buyer. Having a mortgage pre-approval letter in hand when you make an offer shows sellers that you’re serious and can follow through with the transaction. This gives you an advantage over competing buyers who haven’t yet completed this critical step.
Act Fast or Lose Out
Buying a house is a huge investment that should involve weighing the pros and cons of a particular property before submitting an offer. But even with the shift in the market, if you take too long to pull the trigger, you could lose out. We’re seeing more buyers enter the market, and home applications are on the uptick.
If you don’t want to risk losing a property you love, you’ll want to act quickly when you find it. If you like what you see, discuss it with your real estate agent, and have them put together and submit your offer that same day.
No buyer should ever feel pressured into a home purchase. But if you’ve toured enough homes to know what you want and what your budget can afford, you can make an offer backed by confidence instead of having doubts or feeling rushed.
If you’re looking to buy a home in the greater Sacramento area, the team at New Way Mortgage can help. We have access to competitive interest rates and a variety of home loan programs, including conventional loans, jumbo financing programs, VA loans, and FHA loans.
Give us a call today at 916-465-6639, and let us match you with the mortgage that makes the most sense for your unique homebuying situation.