Five New Rules To Follow When Purchasing A Home In This Current Red-hot Market

 The COVID-19 pandemic played a large part in the current strong housing market. Bidding wars have been predominant for the past year and a half. Now that the interest rates are starting to rise, the competition is getting even stronger. Here are five new rules to follow when buying a home in 2022.

1. Lock in a mortgage before you start your search

In the past, homebuyers would find a home and then get pre-approved. This is not the case in 2022 because of the strong demand. This fast-paced market makes it essential to get pre-approved before you start the homes search process.

“You should be pre-approved by a lender and knowledgeable about your finances before you even begin your home search,” says Beverly Burris, an agent with William Means Real Estate in Charleston, SC. “With houses going under contract as quickly as they are right now, often within days or sometimes hours of going to market, there is no sense in going to see a property before speaking to a lender and learning what you can afford.”

2. Shop for homes priced below what you can afford

Once you get pre-approved you then know how much you can afford. Homebuyers in the past have purchased a home on the high end of their mortgage approval and that resulted in a recession. Today, homebuyers are encouraged to purchase a home below the top of their price range.

“These days, houses are selling for more than their list price and, as a buyer, you’re more than likely going to end up in a bidding war,” Lori Ozley, a manager with Birmingham HomeBuyers explains. “If you look at properties that are under your budget, you’ll have room to submit a competitive offer that goes above the asking price.”

3. If you love a property, act fast

Purchasing a home is a big deal so most homebuyers want to think on it before they make the big leap. Today's market does not afford homebuyers this luxury.

“If you are interested in a property, you must act quickly or you risk losing out to another offer. When you really like a property, you should sit down with your real estate agent, go through the comp research, and work on putting together an offer the very same day,” says Bill Samuel, the agent and investor behind Blue Ladder Development.

4. Put your big number out there from the start

When it comes to purchasing property, negotiations have always been part of the process. This is not the case today in this hot market. Homebuyers need to put their best offer forward at first.

“Be prepared to make your best and final offer from the beginning,” advises Jodi Dougherty, a luxury broker at Downtown Realty Company in Chicago. “Since sellers often receive multiple full-price offers, you may not get an opportunity to counteroffer if you come in too low.”

5. It will probably take multiple tries before you succeed

Don't give up, there are tons of other homebuyers looking at the same homes in the same market. It might take more than once to put your best foot forward and have your offer accepted.

‘You can almost plan on having several offers not go through before one is accepted,” explains Brian Chinn, leader of the Brian Chinn Team at Newberry Real Estate in Tyler, TX. “While that isn’t always the case, it happens more often than not in this market.”

If you are interested in purchasing a new home, contact a Realtor who can help you through the process. “It’s easy to get frustrated,” Chinn adds, “but having patience is key.”

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How to Be the Expert Home Shopper

Finding a new home to buy is an exciting and even entertaining way to spend your time.  The thrill of knowing that you are soon to become a homeowner and “have your own place” is one of the best experiences that you can have.  However, below are some tips on how to be the expert home shopper when it comes to finding either your dream home or your next investment.

Timing

There are a couple of things to take care of before you start your home shopper experience.  First of all, make sure you give yourself plenty of time, dependent on your personality, to make a good choice

of a home to buy.  This means that you don’t want to start looking for a new home when your lease is about to expire in a week or your are required to move within a couple of weeks.  Because it’s such a huge investment, buying a home shouldn’t be a rushed decision unless you are good at seeing something and making a quick decision, and you are comfortable with this process.

Secondly, find out how much home you can buy – how much you can afford. You will want to carefully and thoughtfully narrow your search to homes for which you are able to actually get a loan, so you don’t waste your time touring homes that may be out of your price range.  Also, be sure to put yourself in the best position as a buyer by getting a lender commitment letter to show that you pre-qualify for the financing on a new home.

Decide Your Features

This is your dream home, so dream big.  Sit down and brainstorm the features that you want in your new home.  Decide what you can and can’t live without and then stick to your list.  If a home that you are touring measures up to most of your wishlist, and you are willing to compromise on some items; that’s o.k. as long as your began your search with a clear idea of exactly the type of home you wanted to buy in mind.

Be Organized

Once you have given yourself plenty of time, gotten pre-qualified for your loan, decided what you wanted in a house; then you can begin the home buying process.  Stay organized by possibly using an app to map out the homes you are going to look at, take notes about the homes that you especially

like so you can keep your choices straight, and make sure you have enough time in a day to tour everything you want to see. If necessary, break up the tour days to allow yourself time to take a lunch break, relax and consider home options, and simply take care of yourself.  This isn’t a race, it’s a marathon, and there may be many homes in the bunch that you look at before you find the perfect one.  Dress comfortably with the weather in mind, and you might even want to wear shoes that slip on and off for those particular homeowners who require you to keep their floors neat and clean.

A Second Look / Comparison

Once you have your list of top selections, go out and tour them again because the second time through might help you see pros and cons that you didn’t see the first time through.  You will want to do this in a timely manner for homes that you really like because real estate is booming throughout the country, and homes are not staying long on the market. Home inventory is down to just over a 4-month supply which is the sign of a healty economy.

If you are interested in buying a new home for sale, Contact Ron Lee Homes at 985-626-7619 or E-mail Info@RonLeeHomes.com for more information on New Homes for Sale.


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