5 steps to help you successfully navigate today’s housing market
In many parts of the country, home prices have been soaring. According to the National Association of Realtors, the median existinghome price rose more than 17% in the one-year period ending in March 2021. This reflects just how competitive the market has become for homebuyers.
If you are among those looking to purchase a new home, you should have a solid strategy in place before entering the market. Assume that any house you are interested in has drawn the attention of other potential buyers. In this environment, it helps to be prepared. Here are five steps that can put you in a more competitive position in today’s home buying market:
1. Get your financial house in order
A top priority is to have a good handle on your current financial situation. If you are already a homeowner, this means having a clear idea of the value your home will bring in today’s market and how much equity you have available. Another question is how much money you have set aside to cover a down payment on a mortgage or other expenses related to moving into a new place. It makes sense to sit down with your financial advisor so you are aware of your current financial capabilities to participate in today’s market.
2. Look to professionals for help
Seek out the guidance of a real estate professional. Finding an agent through a referral from somebody you trust is the best way to identify a qualified agent. Don’t be afraid to interview more than one to find the right fit. Also talk to a lending institution to get pre-approved for a mortgage (if you require financing). This is especially important if you are a first-time homebuyer and want to reassure potential sellers of your creditworthiness.
3. Consider all of your options
It is easy to get your heart set on a particular community or neighborhood as you search out homes. If the supply is limited in your targeted areas, you may need to expand your horizons. Start by drafting a list of the priorities that help define your ideal home and setting. That can be helpful in reviewing available properties and narrowing down your choices. It can also open doors to other areas that you may discover actually meet your needs. Also be careful not to get too set on what you may represent your “perfect” home. Flexibility is important in today’s market.
4. Set a budget and prepare to work with it
A deciding factor in assessing the affordability of a home is to calculate the maximum monthly