What You Need to Know about Buying a Home in 2018
As the spring market continues to heat up, we are seeing more buyers beginning to home search in anticipation of finding the perfect home for them. With more buyers emerging, here are some things buyers should know about buying a home in today’s market in 2018.
1. Downpayment & Mortgage – You do not always need to have a 20% downpayment on a home in order to secure financing. Many lenders are becoming more lenient with the amount you need for a downpayment. Speak with a lender when you begin your search to get pre-approved up to a purchase price of a certain amount, with a certain interest rate, and a certain down payment. While it is advised to put as much down for a downpayment as you are able, there are mortgage programs out there for people putting down 3-10% of the purchase price.
2. Competition – There is a surplus of buyers in the market today, which means there is more competition to securing a contract on a home. It is not uncommon to have competition on homes with multiple offers, especially within a certain price point, and competition comes with full cash buyers. Be prepared to compromise on your offer in terms of price, closing date, inspections, and other terms if you have your heart set on one home above another.
3. Inventory – Since there is a surplus of buyers, homes on the market tend to get scooped up quickly and turn into a pending sale. This means that there is less inventory of homes in the market at one time for buyers to consider. Right now, there is not enough consistent supply of listings to meet the demands of the many buyers. This is good to know since it can affect how you negotiate an offer on a home due to the tight market and the other buyers waiting to swoop in and purchase a home if a deal falls through.
4. Professional Help – The lower inventory and higher competition means it is essential for buyers to get a professional real estate agent. An agent has been through the ups and downs of the real estate market, which makes them experienced in a way that can help guide you through the process better than going it alone. Since the seller pays for the agents commissions as part of the home cost, it is only to your advantage that you get with a professional for help in your home search. We would love to help you!