These are four things that buyers in our current market should keep in mind.
Today we want to talk to all the buyers out there, including those who need to buy and sell at the same time. Here are four things you need to be aware of if you’re thinking about buying in this competitive market:
1. The approval process. Get in touch with a lender to figure out what you qualify for, what your payment will be, and what type of down payment you need. If you’re thinking about buying soon, be careful not to make huge payments, bring on new recurring debt, max out a credit card, or open new credit cards.
2. Rising interest rates. Over the last few months, we’ve kept hearing that interest rates will increase this year. Keep in mind that over the past 50 years, interest rates have spent only 12 months under 3%, 16 months between 3% and 3.5%, and 55 months between 3.5% and 3.99%. Rates have spent 517 months over 4%. Anything below 4% is still historically low, so don’t let the news scare you off a smart purchase.
3. Rising list prices and falling sales prices. Don’t let rising list prices scare you because with consumer confidence leveling out and rising interest rates, we’ll see sales prices go down. If you’re looking in a neighborhood where you think the prices have gone over your price range, get in touch with us; we can break down the real price of that neighborhood.
4. Stay flexible and have a plan. In this market, we need to have a solid plan. We need to talk about having extra cash if there’s an appraisal gap, and we need to stand out from other offers by giving the seller what they want. For example, you could offer a rent-back agreement. Additionally, having a great lender allows you to get creative with your loan.
If you have any questions about this market, give us a call or send us an email. We look forward to hearing from you.