Across the country, the number of mortgage applications is the highest it has been in the past 3 years. Home sales are 10% higher than they were this time last year and the median existing-home price is up 10.1% from this time a year ago. Economists predict even stronger gains in 2013.
So what does that mean for those who have been waiting out the market to get the best deal? Your time is about to be up. As the housing market begins to rebound an increase in rates is expected as well. This is sending buyers into a frenzy trying to get in now while rates and prices are still low. Many buyers are finding frustration in the bidding wars going on over many properties. Buyers need to be ready to be more aggressive in their offers. A few tips for beating out the competition:
- Get pre-approved, not prequalified. Pre-qualified means the lender reviewed your credit and your income information and thinks you will be a low risk loan. Pre-qualified means your documents have actually been reviewed by an underwriter and that you are credit approved making you a safe bet to a seller that the financing will go through.
- Have your agent find out the sellers motivation for selling and then work to meet their need. In some cases the seller has to be out of the house quickly, work with your lender to find out a reasonable timeframe to close the loan and see if you can offer a quicker turnaround time for the seller.
- Limit your conditions and need for seller help. Don’t sell yourself short of course, but the fewer things you ask the seller to do for you, the better
chance you have. - Keep cash on hand. Bid on properties that are less than the amount that you are pre-approved for so that you can offer over the asking price if need be to win out in a bidding war.
Lastly remember, new propertiesare always coming on the market so don’t get discouraged. Buying a home requires taking a leap of faith that when the right house comes along all the pieces will fall into place.
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