The Market is Changing. Here are some Real Estate Buying Tips
There is good news if you are looking to buy a new home! The market has changed. It is currently in a transitional stage. We don’t know if it will go up, down or sideways, but change is good, good if you are buying and maybe the market is still good if you are selling too. The most recent rules, the rules that we have been living for the past year or so that offer night brought half a dozen offers, a selling price of eighty or one hundred thousand over asking price, those recent rules are no longer a slam-dunk, no longer a given. It does happen a lot, but the current climate of our market is more like it was a year ago – random.
Expect the unexpected.
Inventory is expanding, Days on market is getting longer. Price increases, decreases, re-lists, cancellations are all becoming more common.
So, if we do return to a balanced market, we have to relearn the old rules. We can be cautious and prudent again. We can take our time and do things right.
Tips to help you buy a fabulous home
When you think of buying a new home you should always have a home inspection done. This way you know ahead of time if there are any problems with the home so that you don’t end up buying something that will end up costing you tons of money to get fixed and up to code. In a changing market, you should consider doing a mini-inspection before offer date. Many home inspectors are offering a stripped down home inspection service for about half the cost of a full on home inspection.
Go to as many open houses as you can to gather as much information about them as possible. This information can prove invaluable when you move on to the next home. You can use the pricing information and the features in the different homes to compare them to find the one that is going to be the best deal for you. Send a list of all the homes you visit to your Realtor and ask him to update you on a regular basis when they sell with their selling price, and number of days on market.
When considering an older home, for yourself or as an investment, you can save a lot of time and money, by asking your favourite contractor to tag along. Your contractor can give you a rough estimate to help you determine any upgrade and repair costs, which can then help you to negotiate a buying price. This gives you the best chance of staying within your budget.
To save money on your financing when you buy real estate have all of your conversations with the mortgage broker documented by having everything done through email. By requiring that everything is in writing this way there will be back up in case they want to change the rate or terms at a later date.
Is new really better?
When buying real estate be aware that a 15 to 20-year old house is potentially the worst because so many components do not last longer than that. You will want to check to make sure the furnace, roof, and air conditioner have already been replaced or know that you will be replacing them soon out of your pocket.
All agents are not the same
When selecting a real estate agent, don’t be afraid to interview multiple agents before selecting one. A home purchase is likely the biggest financial decision you’ll ever make, and you need to be comfortable with the agent helping you through that process. Make sure the agent fully understands your situation, your needs, and your desires. Do not be pressured into signing a Buyer Representation Agreement.
These common sense strategies can give you the advantage of years of experience that others have had to learn the hard way. It is not as difficult as you may think to buy that new home when you apply the advice in this article. You will be well on your way to a new home.
Bonus tip (for sellers)
There are major ways that you can add value to your real estate sale. A kitchen or bathroom remodel will increase the value of the house, as will an addition in the form of a deck or sunroom. A simple thing like painting the outside and sprucing up the garden, while not adding great value, will definitely increase its value somewhat. In a more balanced market, home sellers have to put in at least a little effort!
I hope you agree that this article has many good tips to help make the experience as smooth as possible. Using the experience of others can be a great advantage, and the tips in this article are just what you need to get the job done without the usual stress.