Competition is hotter than the sun!Inventory is down by 14% and home prices usually drop from May to October.
Try to hold on until August to purchase a home as you could experience a significant savings. Many home prices are dropped by close to fourteen percent in August. Another thing to consider is that mortgage insurance is cheaper because popular lenders (MGIC and Radian) lowered their interest rates this spring. As a result other mortgage companies are competitively reconsidering their rates, too. In light of this information, consider these four tips:
1. - Older listings rock!Contrary to popular belief, older listings are not necessarily "stale." Many times, homes sit on the market because original buyers could not get anticipated financing or they got cold feet. In other words, don't assume that a house has been on the market for a while because of defects. You could get a great deal on a perfectly good house!
2. - Fixer-uppers abound!If you can remain flexible in your understanding of the competitive market, a fixer-upper's not necessarily a bad way to go. There are currently 8.3% more fixer-uppers on the market than there are move-in-ready homes available for purchase. If a fixer-upper isn't your thing, than be ready to move fast once your find that perfect home because it will be gone before you can say "down payment."
Related: "Low Market Inventory Driving Up Prices"
3. - Explore!As previously stated, the market is competitive. All the more reason to get out there and explore neighborhoods in which you are hoping to reside. Scout out the community, note parks, schools and grocery stores. Be ready to pounce once a listing in your desired neighborhood hits the market.
4. - Wimpy offers don't work!There is no room for a low ball offer in a competitive market. If possible, offer cash and make your offer a strong one. Highest isn't always best depending on the financial terms of an offer. Cash usually is king when it comes to getting an offer accepted. If you lack the cash flow, ask your experienced realtorabout generous contingencies, composing an offer letter, asking for a shorter closing or granting free occupancy for a generous time frame. Where there is a will, there is usually a way!
Related: "The Affordability Factor"