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4 Tips for Buying a Home in Spring 2014

4 Tips for Buying a Home in Spring 2014

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The low inventory of homes on the market is making it hard for buyers to find homes. Current housing inventory levels are at their lowest levels since 2004 for the month of March.  As of today there are 18,546 homes on the market, 5% fewer homes than last year at this time when there were 19,600. When buyers do find a home they want to make an offer on, some are getting outbid on the home and have to start all over again.

So what should home buyers do this spring?

Watch John and Anthony discuss Tips for Buying a Home on Fox 25 Morning News.

Tips for Buying a Home this Spring

Here are 4 tips for buying a home in spring 2014 and making the home buying process easier:

1. Bidding WarsWith more buyers and fewer homes for sale there is increased competition, which can trigger bidding wars

Last spring we saw an increase in multiple offers on the same home and we expect to see this happen again this spring. The reason for more bidding wars on homes is there are even fewer homes on the market this year than in 2013. With more buyers and fewer homes for sale there is increased competition, which can trigger bidding wars.

Home Buyer’s Tip:

You are not the only one looking at the house so don’t waste your time offering too little for a home you want. If you like the home and think it’s priced well, chances are someone else will, too. Work with your agent to negotiate the right price so the seller accepts your offer.

2. Working with a Buyer’s Agent is More Important Than EverWorking with a Buyer’s Agent is More Important Than Ever

With so few homes on the market you need an agent who can do the legwork and find the right homes that fit your criteria. An experienced real estate agent will have an extensive network of contacts and may even know of homes for sale that aren’t listed yet. Remember that listing agents are contractually bound to act in the best interest of their seller— not you the buyer!

Home Buyer’s Tip:

Hire an experienced real estate agent who has dealt with many real estate transactions and can help you navigate through the paperwork, inspections, and any issues that arise. A buyer’s agent knows the trends in the market, what has sold in the neighborhood, and ultimately what will work best for you. So be sure to hire the right agent, because the wrong agent with a lack of experience could cost you tens thousands of dollars during an offer negotiation.

3. Get Pre-Approved Before You Shop for a HomeGet Pre-Approved Before You Shop for a Home

Most home buyers have a rough idea of how much they can pay every month on their mortgage. But the fact is they may not be qualified to borrow as much as they think. You don’t want to find the home of your dreams only to find out you’re not able to obtain the financing necessary to purchase it. Another thing to remember is mortgage brokers don’t typically work on weekends when most buyers make offers, so have your pre-approval in hand when you’re viewing homes. If you wait until after you’ve seen the home to get a pre-approval, the home could be sold before you get a chance to make an offer. In this competitive housing market, some home sellers are actually requesting that only pre-approved buyers view their homes because they know these buyers are qualified to make an offer.

Home Buyer’s Tip:

Have your pre-approval in hand even before you start looking, and have it updated every 30 days so you don’t miss out on getting the home you want. Getting pre-approved will make the mortgage application process smoother since you will have already spoken to a mortgage broker and gathered the documentation necessary for the loan. And if there are multiple offers on the home, having a recent, up-to-date pre-approval letter is a distinct advantage over a buyer who doesn’t.

Request Pre-Approval Now

 

4. Be Ready to Move Fast!Be Ready to Move Fast!

Have your pre-approval in hand even before you start looking, and have it updated every 30 days so you don’t miss out on getting the home you want. Getting pre-approved will make the mortgage application process smoother since you will have already spoken to a mortgage broker and gathered the documentation necessary for the loan. And if there are multiple offers on the home, having a recent, up-to-date pre-approval letter is a distinct advantage over a buyer who doesn’t.

Home Buyer’s Tip:

As soon as you see a home you want come on the market, don’t wait to view it. Have your agent show you the home as soon as possible and be ready to make an offer. This is another reason why getting your pre-approval is so important.

This is a great time to buy a home. Interest rates are still low, and in some areas, owning a home is more affordable than renting. Although housing prices are showing slight increases, rental prices are increasing at a much higher rate. The Boston area rental market has seen a 5.5% year over year increase of rental prices* and this trend will likely continue.

But the low interest rates won’t stay low forever. Mortgage rates are expected to rise to over 5% in 2014, and home prices are also expected to increase in certain areas, so buyers should get into the market now.

 









Source

Boston Rent Increases: http://www.wbur.org/2013/06/07/boston-rent-increase

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