With interest rates at a four-year high and very few homes on the market, it can be incredibly difficult to purchase a house. First Fidelis wants to help prospective home buyers better navigate the real estate market in a seller’s market, so here are a few tips.
1) Get Preapproved
Get a step ahead of at least some of your competition by getting preapproved for a home loan. Bring your preapproval letter when you go in to speak to a realtor or the seller. This letter can give the seller peace of mind that you can purchase the home and that the transaction will go smoothly. Having all of these things in order before making an offer on a house can also make the process faster and easier for all parties involved, which is likely to make the seller happy.
It is always a good idea to start the mortgage loan process as early as possible. You may want to start a year early to make sure you have everything locked down and ensure that you still have time to save up a bit for your down payment.
2) Get a Realtor
It may seem more practical to purchase your home without the help of a realtor, but in a seller’s market, it can be extremely difficult. Realtors have vast resources and connections that most homebuyers won’t have. A realtor can offer you advice and help you negotiate prices for you. If you can find an agent that works with only buyers, you might have a leg up on your competition when you are trying to purchase a new home. If you are looking for a realtor in the Kansas City area, First Fidelis can help set you up with a trusted realtor that is familiar with the area.
3) Understand That There is Competition
In a seller’s market, it isn’t unusual for bidding wars to occur on homes. Not only will most houses go for full asking price, but you may also need to pad your budget with extra money in the event of a bidding war that brings the price over market value. A realtor can explain how the competition in the area you are looking in can affect your chances of getting a new home. It can take three or four offers to get an offer that is finally accepted, and there is always a chance that an offer will fall through. A realtor can help you understand the process and contain your excitement until after you have closed.
4) Have a Good Down Payment
Help yourself land the home of your dreams by saving up a decent down payment. Shoot for at least ten percent of the purchase price but go for at least 20 percent if you can. The larger your down payment, the more attractive your offer will look to the seller.
5) Be Ready to Buy
In a seller’s market, you need to act fast. When there are people fighting over a property, you will want to be sure that you are ready to pull the trigger at a moment’s notice. Have all the details worked out before you get serious, so you can be ready when an opportunity presents itself. Know what your limit is but be flexible with your offers when possible. Making a strong first bid might make the difference between landing the property you want or not.
When you decide that you are ready to purchase a new home in the Kansas City Metro Area, contact First Fidelis. We offer the best possible home loans to buyers in the area without all of the hassles that you are likely to find with other lenders. Call us today at 913-205-9978 to get started.