Today, the homebuying market is everchanging. Interest rates, inventory, and the economy all drive the housing market. Sometimes, it’s a buyer’s market (more inventory than buyers). Sometimes a seller’s market (more buyers than inventory). And, sometimes, although rarely, it is a balanced market.
Knowing the current market is step one in setting your expectations when buying a home.
Look to the media or contact a local Realtor that can advise on the current market. If it is a seller’s market, be prepared to pay close to or above the asking price and not have much negotiation power. If it is a buyer’s market, you hold a lot of the cards!
Be Prepared
No matter the market, step one will be knowing how you can pay for your new home. Will you finance or pay cash? Finance options will need preapproval before even looking at a home. It’s important to know (not guess) how much money the bank will lend you for that house and how much you will need to put down to be approved for the loan.
If you will pay cash, you will need a proof of funds letter from the financial institution(s) you bank with that can attest that you have enough liquid funds to purchase the home.
If you have equity in a current home but need to sell it before paying for another home, this cannot be used as proof of funds.
Be Ready to Make An Offer When You Find Something You Like
Whether you are looking for new construction or an existing home, you must be ready to buy when you find a home that ticks most of your boxes. Buyers who sleep on it often lose out.
Be Realistic When Considering Wants vs. Needs
Too many buyers pass up homes because they do not check all of their wants. They miss out on great homes to find a house that doesn’t exist.
Unless you are building from scratch, no house will have everything you want. Many homes will have most of what you need, so don’t say no without consideration. Many wants, such as flooring, paint, crown molding, and countertop finishes, can be added later. Things that cannot be added later are structural and location.
Remember that the more perfect the home, the more you will pay. Turn-key move-in-ready homes sell for a premium. You can save money by completing cosmetic changes at a later date.
Reset Your Expectations When Buying in a “Hot” Location
All areas will have locations that are “hotter” than others. If it is a must that you purchase in a popular location, be prepared to pay more and make an offer fast. If living inside the “hot” area is not a need, consider moving a few miles outside of it.
Bottom Line
Be prepared and have an open mind. Listen to your Realtor and adjust your expectations for success in the current market.
And, if you are looking to buy or sell a home in the Greater Bluffton area of South Carolina, The Yost Group is ready, willing, and able to help. Call or text us at 843.483.5541 or email us at theyostgroup@gmail.com.
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