It’s no secret that many prospective homebuyers are finding the current real estate market challenging. With low inventory, high demand, rising interest rates, and inflation this is a complicated time for buyers. One of the more unexpected consequences of the Covid pandemic was the hyper-focus on one’s home. This has resulted in a robust market where sellers are seeing advancing home sales prices and multiple offers. While competition is fierce, clearly for sellers to sell, they need buyers. If your goal is to find a new home, there are a couple ways you can maximize your ability to have your offer accepted.
Two Ways Homebuyers Can Win in Today’s Market:
1. Act Early
There are a couple reasons why home buyers should buy now. With rising inflation, interest rates are starting to climb. While conventional wisdom may suggest lower real estate prices with an increase in mortgage rates, this is a gamble. Lower interest rates can not only save homeowners thousands of dollars over a 30-year term, but also provides better buying power with lenders, providing more choices.
2. Buy Now and Move Later
The rapid pace of the current market affects not only buyers but sellers as well. In a typical market, sellers often have weeks or months to find their replacement property. Buyers can sweeten their offer by asking about the sellers needs and allowing them extra time to move, offering to close quickly but renting to the sellers for 2-3 months to allow them time to find their new home.
The bottom line is that home loan rates and home prices will likely continue to advance throughout 2022. Potential homebuyers who move quickly can maximize their buying power and ability to win the home.