Buying a home whether it be your first home or even a second home, should be done with prudence and care. You should be looking at homes that you have a shot of getting. Here’s why…
In many markets, there is a lack of supply and big demand for housing. This scenario is creating multiple offer situations with increased competition making it more and more difficult to buy a home. Expecting five or six offers at the minimum per home is the norm. Most home buyers fit into one of three categories:
The real buyer -this is the individual who is qualified for financing, are flexible on the area and the location and the type of property they’re looking for and understand they have to jump through hoops to buy a home. They know that if they make enough offers the likelihood of getting a house contract is very close.
The maybe buyer –this is the individual looking for a diamond in the rough or a deal on a home that is just simply not there or perhaps was there a couple of years ago, but no longer is. This is the home buyer looking for a foreclosure, a deal on a fixer, or has search criteria that is so specialized when something does hit the market the amount of competition will be more fierce than normal. Where the rubber meets the road, is when this individual finds out the lay of the land is not finding a deal, but rather getting fair price on an affordable home.
The fence sitter buyer -this is the individual who refuses to change their search criteria. Their goals are inconsistent with what the market will support and subsequently prices themselves out of the market.
To successfully purchase a home in today’s real estate market you need to move into the first category to be a real buyer. Most of the time, people who end up buying homes are the ones that start off in being a “maybe buyer” or “real buyer” right out of the gate.
Mortgage tip: being in acknowledgement of where you are financially and how that relates to the market is a huge step in deciding when to a buy a home.
If you can be flexible on purchase price, mortgage payment, down payment, area location as well as bedrooms, bathrooms and lot size, your chances of getting a house goes up dramatically. It is the people who have very rigid requirements that often find themselves continuously searching for homes that struggle. Flexibility and putting your best foot forward when it comes to buying a home, are your two best friends. Lastly, this may go without saying, but always listen and take the advice of your real estate agent and lender.
Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes second homes and investment properties. Learn more at www.sonomacountymortgages.com.