Real estate changes as different financial and employment trends change. As we head into the 4th quarter of 2016, there are a few tips that should be important to buyers. I call them the “Right Now” tips as they apply to the buying segment of the real estate market now. So, what are they?
1. Be ready before you find a home. Make sure to have a preapproval letter, as opposed to a basic prequalification letter, right up front and also make sure to have an action-ready inspector for an immediate property visit. In order to buy right now, you have to act quick. Finding a house first and then going through the motions of prequalified to preapproval and then property inspection – well, that can slow things down and you miss out on the property. Having your ducks in a row before you shop for a property is very important right now.
2. Forbes.com just released a piece on buying new property. The article states, “Builders are cranking production to pre-recession levels. But some are cutting corners by hiring untrained help, not waiting for concrete to cure, painting walls without primers or quietly substituting cheaper materials such as a lower grade of countertop granite, or installing inadequate plumbing or HVAC units.” Thus, if you are considering buying new, consider what you are really buying into. You may want to rethink new vs. quality of materials used to build the home. Understand you truly get what you pay for in life. Is this a risk you want to take? Address if a new home is really on your buying list.
3. Remove your ego. Bidding wars can quickly become about ego and not about the home. Understand your reach and don’t go over it to prove a point about money that really doesn’t matter to the other party and will only hurt you in the long-run. Look at comparable homes in neighboring areas with the same access to the schools and amenities that you value and then set a bid ceiling when shopping for a home. Remember, the ego in a bidding war will only cost you more money than you need to spend.