Spring has sprung (sort of!) and people are getting out of their winter dens to start house hunting. Housing inventory is low in many areas of the Philadelphia region, requiring buyers to act quickly and even experience bidding wars! Over the last few weeks, I've personally encountered multiple offer situations in Philadelphia, Havertown and Phoenixville. In order to be successful in this competitive market, buyers need to be strategic and prepared.
Here are five tips buyers can incorporate into their home buying process that will prepare them:
Step Away from the Computer
Despite the fact that 90 percent of home buyers start their search online, buyers should also consider getting outside and canvassing their desired neighborhoods. In a low inventory market, it's important to to be proactive and not waste time weighing options, because by that time, the property might be off the market. Get to Know the Current Housing Market
Every housing market is different, so it's important to do research on the market and neighborhood trends. Finding a good real estate agent and keeping up with local real estate news is crucial for buyers to understand the nuances of their local housing market. The more quickly buyers can educate themselves, the more successful the home search will be.
**Here is a helpful tool to learn about a local market : Market Insider**
Grab Those Low Mortgage Rates—Before it's too Late!
While mortgage rates continue to hover below 4%, buyers might not be able to enjoy these low rates forever. "With all indications pointing to a rate increase from the Federal Reserve this year – perhaps as early as this summer – affordability concerns could heighten as home prices and rents both continue to exceed wages," says NAR chief economist Lawrence Yun.
Create a Dynamic Team
The fast pace of the most competitive housing markets means buyers have to be in a position to make an offer at a moment's notice. Before making an offer, buyers need to ensure they've lined up a real estate professional, a lender, a lawyer, and a home inspector. They will also want to be pre-approved for a loan and ready to complete a mortgage application as soon as they find a property.
Be Prepared for Bidding Wars
Buyers should be strategic when maneuvering a bidding war. Some agents suggest that buyer clients include an escalation clause, while others suggest they examine the deal and identify areas where they could be more flexible, in terms of contingency clauses.
Source: "Spring 2015 Home-Buying Guide: 5 Insider Tips From Real Estate Pros Across the Country," Learnvest (March 9, 2015)
Are you or someone you know needing a Realtor to help navigate this market? Contact me today!
