You are here: Benchmark Home » competitive housing market

Tag: competitive housing market

Home entrance with manicured garden in golden hour

How to Buy in a Competitive Summer Market

by I Am Benchmark

Home entrance with manicured garden in golden hour

The weather is heating up, and so is the summer housing market.

With more buyers entering the market looking to find a new home during the summer months, competition can be fierce. Every homebuyer’s nightmare is finding their dream home, only to lose it in a multiple-offer scenario that drives the asking price up beyond your reach. How can you make your offer stand out in an aggressive housing market? Here are a few ways to get an edge.

Use an Experienced Agent

Think of your real estate agent as the MVP of your home buying team. The right agent will not only make your home search easier, but they can also help improve your chances when making an offer. An experienced agent will work with you to craft a great offer, and will be responsive and professional in discussions will the seller. Having a professional on your team who is knowledgeable about the local market could be the difference between your offer being accepted or rejected.

Get Pre-APPROVED

A lot of homebuyers assume that pre-qualification and pre-approval for a mortgage are the same thing. In fact, they are quite different, and which one you get can make a huge difference in the eyes of the seller. A pre-qualification is only an estimate of what you qualify for based on the income, assets, and debt information you provide. It does not include an analysis of your credit report or verification of the financial information you provide. On the other hand, getting pre-approved means your loan officer documents and verifies your financial information and reviews your credit report. After evaluation, they can issue a specific loan amount you are approved for.

A seller in a multiple-offer scenario will immediately see through a pre-qualification, and worry that if they accept your offer, the deal might fall through if you are unable to secure your home financing. A pre-approval makes your offer stronger and puts you in an optimal negotiating position.

Set Realistic Expectations

Setting realistic expectations can help reduce your stress during the home buying process. Making an offer on a home can be nerve-wracking, so it is a good idea to go into negotiations already knowing your bottom line. Make a list of what you are willing to compromise on – whether it’s sale price, contingencies, or closing costs – before you make your initial offer. Don’t let a high-stress multiple-offer situation make you commit to something that does not make financial sense for you and your family. It can be disheartening if your offer is not accepted. If this happens, just keep your head up, and continue your home search armed with your pre-approval from your lender, and the expertise of your real estate agent.

Ready to look for your new home this summer? Contact me, call , or apply now to get pre-approved.Find your local loan officer to get pre-approved.Meet the team, Contact us, or Select your loan officer to get pre-approved.

How to Score in Today’s Housing Market

by I Am Benchmark

Housing inventory dropped 8.5% over the last year as of 2Q 2017, the 9th quarter in a row of this decrease in the number of available homes. Buyers are buying homes the fastest time on record since tracking began in 2012. When supply is down by 20% compared to five years ago, it is normal to expect demand to respond in normal economic fashion. Today, only 47% of homes stay on the market longer than 2 months.

Of course, the decrease in supply has lead to the expected economic consequence of raising prices. Homes are becoming less affordable, especially for first time homebuyers. While there is not much you can do to influence the economics of the market, below are three steps you can take to be able to play the game successfully.

Get Proactive

Before you begin to search, talk to your mortgage consultant and a Realtor. In a highly competitive market, it’s important to be prepared. Homebuyers who begin their home hunt with a pre-approval in hand are able to act fast, resulting in an accelerated time table. The most prepared buyer’s readiness is often more attractive to sellers, putting the proactive buyers at an advantage.

Have a Plan

Whether you’re a first time homebuyer or a homeowner looking to sell your house, creating a timeline model is a great way to plan your success. With clear expectations and a calendar, your lender and Realtor can help make your journey as smooth as possible.

Rely On Your Teammates

Your Realtor and your mortgage lender are on your team, and ready to help you find the best home and financing plan that takes your needs and desires into account. While buying a home can seem like a daunting task, we know that it doesn’t have to be. It’s all part of what we call The Benchmark Way.

* Data and information sourced from Trulia https://www.trulia.com/blog/trends/inventory-q2-2017/ accessed on July 21, 2017