Six helpful homebuying suggestions from experts
As soon as possible in the house-hunting process, learn about financing and determine the mortgages and financial terms for which you qualify.
Buying a home now in Miami-Dade County is quite challenging, particularly for middle-class workers who want to purchase rather than keep renting. Two local experts, The Keyes Company real estate agent Maria Carillo and Morningside Mortgage president and mortgage broker Grant Stern, offered tips for people to better position themselves in this competitive and expensive housing market.
DON’T HESITATE TO MAKE OFFERS
Move quickly to make an offer when you find a property that you are interested in buying because of the competitive nature of the Miami-area housing market and the lean inventory of homes available to buy.
“If you have 20 showings and you get five good offers, you don’t have to continue to show,” Carillo said. “Some people have a time frame and say offers will be due in a week. Then, it is a little bit better for the buyer.”
GET PREQUALIFIED FOR A MORTGAGE
As soon as possible in the homebuying process, learn about financing and determine the mortgages and related financial terms for which you qualify.
“Make sure you get prequalified based on interest rates right now. Knowing where you stand matters,” Stern said. “When interest rates go up as they have and the average mortgage rate goes from 2.99% to 3.5%, that makes the cost of money 20% higher. That could change your numbers off the bat.”
WORK WITH RESPONSIVE MORTGAGE PROFESSIONALS
Work with a mortgage broker or lender that can quickly meet your needs. The home-buying process moves at a rapid pace so having a mortgage professional that can respond to your questions promptly makes a significant difference to be able to close on a purchase.
SHOP AGGRESSIVELY FOR HOMEOWNER INSURANCE
Shop around for an insurance agent that can quote you a price on a property insurance policy that meets your needs as soon as you find a home you like.
“The first time you find a property,
quote everybody,” Stern said. “Insurance agents will have a broad range on what they charge and they make more money on higher premiums.”
UNDERSTAND HOW LOCATION AFFECTS HOME PRICES
Buying a home near an area such as a flood zone often presents risks and leads to higher insurance and other costs.
“If those are the places you’re looking ... your dollar won’t go as far,” Stern said.
PREPARE FOR ANOTHER YEAR OF TIGHT HOUSING INVENTORY
Expects predict Miami-Dade will remain a hot housing market throughout the year, which means anticipate high price tags on homes and plenty of competition to buy.
“This year is still going to be a year where there may be less inventory than there is demand,” Carillo said. “Over time, things change. The pendulum will be more in the middle with more inventory and less buyers. At some point in time, it will get back to normal. ... It will not be happening this year.”