Buying a Home in a Competitive Market

March 18, 2024

In a seller’s market, purchasing a home can seem daunting. Interest rates are up, supply is low, demand is high. But when you’re prepared, you’ll find the home that’s right for you.

Here are tips to work toward your dream.

Boost Your Homebuying 

Start by learning more about the process. This will help you navigate the current market including  preapprovals, loan types and the costs of homeownership. Online resources such as workshops and calculators, will provide guidance, whether you’re ready to buy, how much home you can afford and what you’ll need for a down payment and closing costs. Examine your budget to see where you can spend less and build up your savings.

Plan Like It’s Going to Happen 

You can’t control the market, but you can control how much you save and earn. Take advantage of today’s higher savings rates with share certificates or high-yield savings accounts. Keep your credit in good shape. Don’t buy big-ticket items as you get closer to buying. 

Partner With Knowledgeable Professionals

Getting expert guidance can speed up the homebuying process. An experienced loan consultant will help you find the right lender, loan options and discounts. Most importantly, they will help you get prequalified for a home loan. Knowing what you can afford will help you narrow your choices. Next, an experienced real estate agent will discuss homes and neighborhoods that fit your housing budget and prepare you to successfully make an offer when the time comes. A good agent will help you find the latest listings and negotiate the sales process.

Understand the True Cost of Ownership

When you become a homeowner, it’s important to be aware of the costs you never had to think about as a renter such as property taxes, homeowner’s insurance, utilities, possible homeowner association fees, and property repairs and maintenance. Many people opt for home warranties, which can repair or replace appliances and major systems such as your heater or air conditioner. 

Expand Your Horizons

Of course, you have ideas of where you want to live, including certain school districts and neighborhoods. But consider expanding your home search. An experienced real estate agent can help you find homes and neighborhoods that match your needs. Be patient. Keep building your savings so you have negotiating power.