Buying a Home in 2021 - a New Paradigm
Based on current housing trends, 2021 continues to be a Seller’s Market across U.S. real estate. The pandemic combined with low mortgage rates has increased the desire for more living space and home ownership. There are a lot of people looking to buy but not enough people looking to sell. In this Seller’s Market, it’s important to be prepared. Below are a few tips to help.
#1 Choose a Trusted Advisor Realtor to Work With
It’s more important than ever in a sellers’ market. A sellers’ market is when homes in a market are selling in less than 6 months. For the best results, find a Realtor that is plugged into the market you in which you have interest. Use their support and expertise to find the right home and stop yourself from making emotional decisions. Realtors are wired into the schools, transportation options, neighborhoods and can best explain the home buying process to you. An experienced Realtor is a great way to keep emotional decisions in check. Find a good realtor and lean on them for advice.
#2 Know your Numbers
The benefits of a preapproval make your offer strong especially since we are in a sellers’ market and inventory levels are at record lows. You need to know how high you can go with your offer. Get in touch and stay in touch with you trusted mortgage advisor. Look at all options both fixed rate and adjustable rate. The comfort of a 30 year-fixed rate is great but if you are planning to stay in the home for less than 7 years you are better off in an ARM. This is the case for many First-time buyers who are often better off in an ARM.
#3 Be Prepared to Move Quickly
Get the paperwork out of the way. Applying for the mortgage is time consuming and there’s plenty of paperwork which you can complete upfront. Multiple offers today are common. Homes are selling fast, and you will lose a good one if you hesitate.
#4 Make a Fair Offer
It’s natural to want a to get a fair price or pay below market. Submitting a low offer today may lead the seller to question if you are serious. They will dismiss it. Your Realtor can show you what similar homes are selling for in the market and guide you.
#5 – Be as Flexible as Possible
Prices, moving dates, mortgage contingency are all negotiable so be as flexible as possible. Unless you know the house or it’s still under home warranty, resist the temptation to waive the inspection.