Rule No. 1: It’s a marathon, not a sprint
In today’s market, it may take three to six months to buy a home. Depending on the state, it may be even longer. Low inventory and a strong buyer demand complicate the process, and increase your chances of encountering a multiple-offer situation. The sooner you start your search, the better.
Rule No. 2: Finance, then buy a home.
If you need a mortgage to buy a home and want to be taken seriously by any buyer, get pre-approved for a home loan before you begin your search. With such a competitive market, you need to be fully prepared to move on your offer.
Meet with at least three lenders when shopping around for a mortgage. Banks, credit unions, and mortgage brokers all offer different interest rates and fees. You’ll want to compare all of your options in order to make an informed decision.
Rule No. 3: Present your best offer
Real estate experts advise against lowballing your offer. Ask your agent for advice, as real estate markets vary by neighborhood. How long a house has been on the market should also be taken into consideration, as houses that have been on the market longer may be overpriced. There may be room for negotiation then.
Rule No. 4: Reconsider contingencies
Because it is a seller’s market, you may negatively draw attention to your offer by attaching too many contingencies. Some contingencies shouldn’t be withdrawn, such as an appraisal contingency required by your lender if you’re getting a mortgage. Others, such as home inspections that you can take of yourself, can be dropped.
Rule No. 5: Move fast
Because the market is so competitive, you may only have a few days to view the property, speak with your agent, and submit an offer. Many sellers will list their house, have an open house, and choose someone shortly thereafter. Be prepared to act fast.
Lakeside Title Company
Lakeside Title Company is here to help ensure that everything goes according to plan when you buy a home. We are real estate transaction experts with decades of experience streamlining transactions for lenders, realtors, buyers and sellers. To find out more about our numerous title-related services, visit our homepage or call our offices at 410-992-1070. We look forward to the chance to serve you!