In the US, it is a sellers market these days. Stats say that if you put your home on the market, it would most probably sell within three weeks and in some parts of the US, within a few days. Some of the factors that are driving up home prices are proximity to employment centres and desirability of school districts.
Many people now seem to be taking up home ownership as rents and mortgage rates are escalating by the day. By assessing certain attributes, one can still compete through and find the perfect home for themselves.
Here are a few things that you can do to make yourself a strong competitor in a tight home-buying market.
Get Preapproved- A preapproval is a letter issued by a lender after they examine your credit and other expenses and determine a mortgage you can afford with the given guidelines. A seller knows that you are serious, ready and financially able to buy a good home when you submit your offer with a preapproval.
A strong net-price- Offering a price much below the asking price will make you lose the offer. There is always room for some adjustment with these prices so be realistic. Taking the help of an experienced real estate agent who can help you make a strong offer is advisable. The net price accounts for the sale price as well as the closing costs and other monetary details discussed in the deal. To better capture the full picture of your offer, make sure your real estate agent has reviewed the net to the seller price, which takes into account everything the seller will be expected to account for.
Avoid the contingency contract- Contingency contracts involve having to sell one’s home before closing in on the other. Such contracts can turn sellers off. A clean offer will put you ahead even in a less competitive market as it shows that you are serious.
A larger down payment- It is advised that a buyer should always offer the highest down payment they can manage. Research has shown that sellers are more inclined towards accepting an offer with a large down payment as it would qualify for mortgage more smoothly. With many programs across the country available to enable buyers to arrange for their down payments, it is now easier to add up to one’s already existing savings and arrange for a large down payment for a house. One can find a suitable program for themselves with the help of a local housing counselling agency.
Look for the hidden gems- There are houses that don’t put their best face forward in every in-demand neighbourhood. These are houses that may require some renovation or upgrades and are often avoided by buyers who want to avoid living through a renovation and the cost of it. However, your dream house might just be a little whitewashing and upgrades away. It might just be worth it if the all-in cost can be managed. So, don’t reject a great house just because it requires a little more work.
BestEdmonton Real Estate are the realtors and real estate agents you need to buy or sell your home in the Edmonton area of Alberta. From preparing all your documents, and to finding your dream house, BestEdmonton will make the process of selling or buying a house hassle-free and smooth.