This morning an article on How to Buy a Home in a Seller’s Market caught my eye. Even though this is a strong seller’s market, it is an excellent time to buy a home. Why? RATES! Interest rates are at an all time low, and according to the Fed, are set to stay there for quite some time. Follow these 5 Tips- Especially #2 and #3 and don’t be afraid. It’s a great time to buy!
Find the Article Here: Click Link **source: Residential Realty Today
And of course I wanted to expand on some of their points- 5 Tips they gave are:
Qualify for the lowest mortgage rate you can.
Yes! Agreed. Upping your credit score with save you thousands in the long run. Work with an experienced lender to identify the areas of your credit report that need work. Also, I love NerdWallet for their great tips. Here’s an excellent article
2. Get Pre-Approved before beginning your home search
There is not a more important step! If you are not a cash buyer, then you NEED to know how much you can afford. The moment you find “the one” you need to know if you can afford it in the first place and your offer will look stronger if you’ve already done the important work of getting pre-approved. NOTE: This is more than a prequalification. This means your lender has run the numbers, looked at your credit, seen your income to debt ratio…. Important pieces. I have great relationships with excellent lenders, let me know if you need a name.
3. Work with an experienced agent
Everyone has to start somewhere, but in a hot market with multiple offer situations, you want someone who knows the system. An experienced agent can write a STRONG, clear, concise offer that speaks to a seller. The seller’s agent will discuss each offer with their client, and will want to be sure the buyer can complete the transaction. You want your offer to be described as “strong” rather than “weak”. An experienced agent knows what terms are important in an offer, and the terminology needed to help get the deal done. Also, they will be more likely to have an informed pro/con conversation with you regarding your must haves and asks you may want to make in your offer. I’m well-informed about our current market, and represent many sellers. I know what seller’s are looking for in regards to an offer.
4. Consider Buying when it is not a seller’s market
The article suggests you wait until there is more inventory. Yes, more inventory will be helpful, and hopefully (can you feel me crossing my fingers?) there will be more inventory as we move into spring. Our particular market has some general issues that make an increase in inventory slightly problematic and slow to meet our general need. Don’t lose hope! Every buyer I’ve ever had has eventually found a home, and you will too. We will work together to set up a search, get you ready to be able to make a strong offer and then POUNCE! when the right property eventually does come onto the market. Also, be prepared to possibly write multiple offers on homes. In this market it may take a few tries to beat out the competition.
5. Pull out all the stops to impress the sellers
The article suggest you write a “love letter” to the seller about the home you want. Many buyers include a personal letter for the seller’s consideration, in it you can tell them your plans for the property, how much you love the home and show your commitment to the transaction. The other piece is all about terms. Earnest money, down payment, contingencies, closing date and provisions. Those are the variables that circle us back to #3- Work with an experienced agent. I can walk you through each of these variables and give you tips and insight on them.
Let’s Get Started!
Call me today, Mandy Snook. Broker/Owner, Montana Land Company. 406.360.1057 or email me, mandy@mandys3.sg-host.com
