Have you decided that this is the year you will buy a new home? Perhaps you’re a new buyer looking for that first home to start your home-owning journey, or you’re looking to upgrade to your dream home this year.
Whichever is true for you, you probably found yourself here because you’re not sure where to start on the road to owning your piece of paradise. Don’t fret; that’s where we come in. This article will describe a few things you’ll need to know before you leap into the world of real estate buying. So read along and find out!
The Market Is Competitive
It’s no secret that the current real estate market is as competitive as ever. It has been trending up for several years now, and even with easy listing tools like HomeLister available to sellers, there are still far more buyers in the market than there are homes available.
You’ll need to set a budget and shop within it. Long gone are the days of getting a nice home for less than asking. Some homes sell for well over the asking price in the most competitive markets.
You’ll need to consider this when shopping for your dream home. Be aware that simply offering the listing price might not be good enough. Knowing your budget and being prepared to make a competitive offer on the home you’re interested in will give you peace of mind that you’re not biting off more than you can chew.
Housing Prices Will Go Up
As mentioned previously, the market is competitive, and straightforward supply and demand economics will push the price tags on homes throughout the year.
Planning for this when you’re shopping can be beneficial. For example, knowing that prices will likely be much higher in the summer months when more people are looking at buying new homes can help you plan to buy in the spring or winter, when there is likely to be less competition for the same house, in turn allowing you to get a better deal.
Also, remember that the low-interest rates found in much of 2020 and 2021 are expected to be raised in the first quarter. So you’re likely to find a much better rate for your mortgage earlier in the year than you will by the end, meaning if you’re thinking about buying a home, earlier is better.
Houses Will Sell Quickly
If there is one consistency to this market, it’s the competitiveness we keep hammering home. Any house that comes on the market is not likely to last longer, meaning that you, or your agent, if you have one, need to be on top of scheduling showings and timely with offers should you choose to submit one.
Many houses in the current market are hardly listed for a week before offers are turned into the sellers. This means velocity is everything if you find your dream home.
As discussed in the previous bullet, prices can be ultra-competitive, and escalator clauses are becoming more of the norm. Other factors that drive winning bids are substantial down payments, few contingencies, and pre-qualification for financing to make the sale easy for the seller.
You’ll need to work quickly if you want to buy in 2022, so consider that before you hunt for the perfect house.
Find A Reputable Home Inspector
The final piece to the puzzle of home buying, especially in this rapid-fire market, is to find a reputable home inspector that you can entrust to give you sound advice when the time comes and your offer is accepted.
Due to the market’s competitive nature, many people feel the need to move so fast that they are inclined to waive their right to an inspection to win the bid and start the closing process. Unfortunately, this is not necessarily a good idea.
With the high-ticket prices of homes in this market, you might find yourself strapped for cash should something significant come up after you close on your house, and you’ll regret not knowing about it before you closed the deal.
It is much better to know what you’re getting into and any issues with the property before you move in than after. Find a great home inspector; you can walk away if you have to or adjust your offer accordingly.
In Closing
Despite the competitiveness, 2022 is still a great time to buy a home. You need to do your due diligence, which we’ve outlined before making that leap. Happy house hunting!
