Right now, we have a seller’s market in real estate. Many houses are going above contract, and sellers can create bidding wars. This type of environment creates huge challenges for people who would like to buy a house. Some buyers are even making offers sight unseen, just to make sure they get something. But even in these cases, the buyers may lose out.
The average sales price of homes in the United States pretty much always seems to go up, except for short-lived dips. For example, between the latter part of 2017 and 2020, the average price of housing did go down. Then it once again began its steady ascent. As per the experts at SoFi, “Your mortgage loan’s interest rate is affected by your credit score, down payment, and the amount of your mortgage loan, among other factors.”
According to Nicole Rueth of Colorado-based Fairway Independent Mortgage Corp., real estate always goes up over the long term, even if it does not go up every year. In her opinion, waiting for a drop in property values to buy a house is a high-risk strategy. In the long run, even if you time your purchase perfectly, the gains you make will be relatively small compared to the total increase in value.
One recommendation for buying a house in a seller’s market is to find a good realtor. Realtors live and breathe real estate. They are your local experts on local real estate markets.
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Here are some other tips that will help you make the best of a tough market:
Don’t limit yourself when it comes to geography
If you have your heart set on a particular area but discover it is far outside your price range, it may be time to broaden your search. There may be other neighborhoods and suburbs that have most of the qualities you are looking for, but they might be in a different geographical area. However, these alternatives might actually be better for your family.
Make sure to have a home inspection to find any problems
Home inspections are cheap insurance. It is far better to spend a few hundred dollars and bail out of an offer than to buy a house only to discover that it needs major repairs.
Try to understand the market
This is one reason a good realtor can be a gem. If you have one that represents you, the buyer, they can steer you away from overpriced houses. If you don’t have such a realtor, then you’ll need to do your own research. Look at comparable houses in the area and how much they sold for.
Make sure to have your finances taken care of
You can pre-qualify for a mortgage, for example. Make sure to get one from a reputable mortgage company so that potential sellers will take your offer seriously. Most sellers prefer if there are no unforeseen delays on the sale of the house, so knowing that the financing is in order will work to your benefit.
To learn more about home mortgage loans, check out SoFi. You can get your dream home by taking advantage of SoFi’s competitive rates. You can buy a home with as little as 3% down, and you can get pre-approved without hurting your credit score.
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