It certainly looks like 2020 is shaping up to be the year of the home buyer. It all makes sense. Rates are low, and many buyers are eager to lock in smaller monthly payments.
As expert mortgage brokers, we help these buyers daily. This got us thinking—why not share the top home buying tips 2020 has to offer?
We’ve whipped up some insider tips to ensure your success during this year’s house hunt. Keep reading to learn how you can close out this year like a home buying pro.
Here’s what’s waiting for you
As it presently stands, the real estate market is low in inventory and saturated with buyers. This reality yields stiff competition from other buyers and agents elbowing their way through limited availability.
It’s not uncommon to have a showing canceled due to another offer being accepted. Sometimes this can happen within the same day! Remember that low inventory and high volumes of buyers mean you can’t take your time browsing listings like you usually would.
We’ll get into the importance of acting quickly in a bit, along with other ways you can achieve success in home your search.
Agents represent their buyers, not you
The competition you’ll be facing on the market isn’t just limited to other buyers.
The real estate professionals who represent other parties are as committed to their clients’ success as your representative is to yours. Other buyers also use accomplished agents with professional networks and expert negotiating skills. This means you need to be focused and committed to the home buying process.
Here’s how you can choose a real estate professional who can help you cut through the competition:
- Look for constant communication – Things are likely to change at a moment’s notice, so you’ll need to stay nimble. When interviewing a real estate professional, be on the lookout for how quickly they respond to phone calls, texts, and emails.
- Proactive beats prudent – Your agent should be sending you listings of homes that are within your price range while attempting to satisfy your checklist.
- “Comps” are king – While sellers have a bit more negotiating leverage right now, your agent should be giving you comparable home sales for the homes located in your desired neighborhood. This will help you make an offer that will be taken seriously.
Real estate transactions are moving rapidly now, so you should do your best to maintain a somewhat open and flexible schedule. Depending on where you’re looking to buy, your agent may call you to attend a same-day showing.
You don’t want to miss out on owning on a home you love because you missed the chance to see it in person.
Get your foot in the door… fast
We covered this above so that we won’t belabor it too long here. Still, the need to act quickly doesn’t only apply to working with a real estate professional.
Perhaps one of the biggest home buying tips 2020 has revealed is the need to act quickly at the mortgage stage of the home buying process. How does this work? There is one essential step that any home buyer must complete before ever considering owning a home, let alone speaking with an agent.
The good news? We help people do it every day:
- Get preapproved for a mortgage – you now know exactly how much home you can afford, and so does your agent & seller. You’re now taken more, it’s go time!
Simple right? While getting preapproved for a mortgage requires a lot of moving parts, we take care of the details to find you the best loan possible. We guide you through every step, and our loan officers treat your application as if it were their own.
We’ve said it before, but a mortgage preapproval is your ticket into the housing market. As a borrower, obtaining a mortgage preapproval sets you up to begin working with an agent. You can now start your house hunt.
Think like a seller
With so many buyers on the hunt, sellers have the ball in their court. Assuming you’ve already obtained your mortgage preapproval, it’s time to start thinking like the seller you’re making an offer to.
Put yourself in a seller’s shoes. Maybe you’re selling your current home to purchase your next one, or perhaps you’re interested in finally becoming a homeowner yourself. Either way, you’re dealing with sellers who have plenty of offers to choose from.
Now that you have your mortgage preapproval in-hand, here’s how you can position yourself better with sellers:
- Don’t be afraid to bid a bit higher – This will depend on how much you’ve been preapproved for, and you should speak with your agent about the best negotiating practices.
- Negotiate with needs vs. wants – Do you prefer a cosmetic change be made or some other pre-closing request that isn’t really make-or-break? If so, consider nixing it. Competition is high, and there are plenty of buyers who won’t split hairs over contract demands. Again, please speak with your agent about what’s worth it & what isn’t.
Working closely with an agent you trust is key to your success in buying a home in the current market. Be prepared to act quickly and stay flexible.
Ready to buy your home?
There you have it—the best home buying tips 2020 has to offer. Remember to act quickly, work with a proactive agent, and realistically approach your negotiations. Do this, and you’ll be in a better position to tackle the remainder of 2020’s housing market.
We work with trusted partners in real estate and other related industries. These professionals have proven their loyalty to our clients through the results they earn.
Click here to contact us for a list of our trusted partners, such as real estate professionals.
Have you still not gotten preapproved for a mortgage? Our online application makes that easy, too. Click here to get started on your home buying journey.