With the current real estate trends not looking to slow down anytime soon, there are a few considerations to keep in mind if you are thinking about dipping your toes in the market.
Actually, there is no dipping these days. According to the latest research, the average of 38 days on the market prior to selling in 2019 was cut by almost half in 2020 and today the average is closer to 17 days!
Knowing that homes are being snatched up faster than ever is important for both buyer and seller. The market continues its meteoric rise without many signs of slowing anytime soon.
More Than One Roof to Consider
The area where most homebuyers get in trouble is overshooting their budget. This is where it helps to have several perspectives beyond just your preapproval letter and lender.
Chances are that even with the regulations put in place following recent recessions, buyers will be approved for more than what makes financial sense. Therefore, seeking counsel from trusted advisors and friends will help you set a ceiling for a sustainable mortgage payment.
Then make sure to stick with that number despite what you may hear from realtors or when you feel the pressure to overshoot it in order to purchase a house quickly.
Also, remember that you have to pay other monthly expenses like property taxes or home insurance—in either escrow or monthly payments—alongside the mortgage. Calculate these costs for the area you are buying into your budget as well.
Patience is Vital to be a Smart Buyer
If a homeowner is disciplined in sticking to a budget, the process of finding a home will take longer than for those with less restraint. In today’s market, bidding wars are becoming a regular occurrence.
Try not to be discouraged by the current climate that has created this condition and determine ahead of time not to fall prey to tactics that make you feel uncomfortable. It is much more advantageous to walk away than get locked into a bad decision—even if disheartening.
Fortunately, most experts agree that the current low rates will remain so for quite a while.
Wherever you are looking to purchase this year, securing the right moving company is another important task. Call All Points Moving & Storage at 860-530-5109 or use our online contact form to learn more today!