Buying a house now is different than it was 5 years ago. The competition is fierce, the inventory is limited, and interest rates are still low. So we get it, buying a home is frustrating right now but 1. it is possible and 2. if you really want that home, you will get into one! Keep reading on and we will give you some pertinent tips and tricks on buying a home in 2022.
IS IT A GOOD TIME TO BUY?
Yes and no. With all the competition and low inventory, the average person would wait to buy a home without knowing all the facts. It is a great time to buy because of the low interest rates, and on top of that, the longer you wait to buy a home, you’re risking paying more. At the end of the day, write down the pros and cons and make sure you are ready to take that step.
SETTING A BUDGET
When buying a home, whether in 2022 or 5 years ago or 10 years from now, you should check your credit, save money, and set a budget. Sitting down and ironing out your finances and then getting pre-approved for a mortgage will help this come into play. When you get to the stage of finding that dream home and putting down an offer, it is very easy to want to bid over asking to beat out competitors but it is very important that you do not pick up more than you can chew. Stick to your budget.
MAKING OFFERS ON HOMES
Before making offers on homes, decide what you’re willing to bargain. One of the strongest offers you can make in such a competitive market is doing a cash offer, so if this is an option for you, congratulations, you’re probably their top pick, but since having 100’s of thousands of dollars lying around isn’t feasible for the average person, you want to ask yourself a couple of questions: Would you be willing to waive contingencies? The inspection period? Would you be willing to do an earnest money deposit with your offer or write personalized letters? Doing a little extra to get the seller’s attention is extremely common in today’s market and in many cases, may be that thing that pushes them over the edge to choose your offer.
At the end of the day, the biggest thing you have to be if you want to buy a home in this market is patient. You may have to make 10 offers on 10 different homes before you get to the one you want, but keep in mind that once you get to the finish line and show up to closing day, you’ll realize it was worth the journey and can start life in your new dream home!