Home prices increased recently after sales surged when the pandemic started more than a year ago. Many factors came into play, including the low supply of homes in the market and the increase in demand following the reduction of interest rates by the Federal Reserve.
These factors also caused real estate to become a seller’s market as home sales went up by around 21 percent. Despite this, the demand for homes continued well into 2021. If you are in the market for a new home at this time, you should take the following things into account while looking for your dream home.
Expect a High Price
The high demand and low supply of homes have increased prices in nearly all parts of the country. Even though this increase depended on the location, the rate of increase was the highest since 2005. The highest increase was noted in Phoenix, where home prices went up by as much as 20 percent. With this n mind, you should expect high home prices compared to a year ago. So, you should prepare your funds if you want to buy a home at this time.
You can consider looking for land for sale instead and build your home on the real estate you purchased. This decision can prove beneficial for you since you can customize your home depending on what you want.
Location Plays a Factor
As indicated earlier, home prices depend on the location. Even as the median home prices in San Francisco are at around $1.3 million, the home value in West Virginia is only $113,100. So, if you are looking for a new home to buy, you should check the location and the median home prices in the area.
Since the pandemic is not yet over, you should also check the current situation in the area where you are planning to buy a home. It’s always best to look for a place where the infection levels have gone down, and the majority of the population is already fully vaccinated.
Prepare for a Virtual Home Tour
Even though around 320 million vaccine doses were administered, you may want to rethink visiting a home to check it. Since it’s important to check the home, you can use the recent developments in technology to do this. You can go on a virtual home tour that real estate agents are offering to potential buyers.
All you need are video conferencing software, a device to access the tour, and a reliable internet connection. You should also make sure that the real estate agent is available when you go on the virtual tour. This allows the agent to provide additional information about the property. You can also ask questions during the virtual tour.
Mortgage Preapproval
To get a better chance of buying the home you are eyeing, you can have your mortgage preapproved. Mortgage preapproval shows the seller that a lender already verified your creditworthiness and finances. It also shows them that you are ready to move into the home.
Getting mortgage preapproval requires proof of income and assets. You should also have a good credit score. A high credit score allows you to get a lower interest rate on your loan. Additionally, you should also show documents that indicate that you have stable employment to allow you to pay off the loan.
Look for a Reliable Agent
Getting a reliable real estate agent is also a good idea. These agents can negotiate on your behalf and know the neighborhood you want to buy your property in. To find a reliable real estate agent, you should research and talk with their previous clients. With this, you’ll have an idea about the experience and skill of the agent in getting a good price for the home you want to buy.
Check Other Homes
Even though you are already eyeing a house in the market, you should be open to other properties that fit your requirements. This is essential in case the price of the home is higher than what you can afford. It also allows you have a second option in case someone already bought the house ahead of you.
To increase your chances of buying the house that you want, you can look for homes that are below your budget. This gives you enough room to negotiate in case someone else is also eyeing the house. It also allows you to avoid dipping into your savings to buy the house.
The current US home market is competitive so you should prepare properly before you go house-hunting.
