For a first-timer, the process of buying a home can be as exciting as it is challenging. While the sellers’ market is tricky to navigate, there are critical measures/steps you can take to improve your chances of finding your dream home at the right price. From arranging finance to working with a reputable real estate agent here are 6 housing market tips for new homebuyers.
- Seek out Mortgage Preapproval
It’s important that you obtain a mortgage preapproval before you begin shopping around for your dream home. Typically, sellers are more inclined to seriously consider offers from preapproved buyers. You simply need to supply your mortgage lender with some financial information, including your income and expenses, to get preapproved. Preapproval also enables you to narrow down your search to an affordable price range.
- Find the Lowest Mortgage Rate
Currently, mortgage rates are at their lowest, meaning that this is a great time to shop around for an affordable home loan. Even so, rates may vary from borrower to borrower, and your credit score will significantly influence the interest rate most lenders are inclined to give you. You can still boost your credit score and qualify for a more affordable mortgage by taking measures such as:
- Paying off outstanding debts
- Increasing your savings to afford a larger down payment
- Correcting credit report errors
- Enlist a Buyer’s Representative
An experienced real estate agent, especially the type that represents home buyers, can help you navigate many seller’s market hurdles. The professional can help you quickly find a home from up-to-date new property listings. When you need help putting together an offer and reaching out to and negotiating with the seller, you can count on a reputable buyer’s representative. The real estate agent can protect your interests as you look to buy your first home.
- Make a Personalized Offer
The price you’re willing to pay for a home isn’t the only factor that sellers prioritize when selecting an offer. To stand out in a crowded market, consider customizing your offer to match the seller’s unique interests. Your real estate agent can help you address the seller’s motivation to sell when writing your winning offer.
- Avoid Lowballing Your Offer
You can make an offer below the asking price since the figure is always negotiable. However, your offer shouldn’t “lowball” or be unreasonably low. You’re more likely to get the seller’s attention if the amount you’re willing to pay for the property is closer in line with the asking price.
- Eliminate Contingencies If Possible
Contingencies may protect you, the buyer, in a less competitive real estate market. Still, you may want to avoid including conditions in the contract as they may put off potential sellers. For example, a mortgage contingency that nullifies the deal if you don’t get financing may be risky for you. If possible, approach negotiations without any contingency.
The home-buying process can be a lot smoother for you when you understand how to navigate the seller’s market. Are you looking to buy a home in the Hermosa Beach area? If so, contact the team at Brighton Escrow today for help. We are a best-in-class escrow service.