A seller’s market is emerging, and it might drive prices higher than you would like to pay. You could always rent until prices come down, but that isn’t expected to happen any time soon.
The good news is that mortgage rates are at an all-time low and might continue to drop this year. Even though home prices are high, low mortgage rates could be your saving grace in buying a home.
What else do you need to know to succeed in a competitive real estate market? Here are five things to consider as you tackle real estate in 2021.
1. A mortgage preapproval is your most important ally.
A mortgage preapproval tells you how much you can afford, which is key when home prices are high. We recommend that you get a mortgage preapproval before you even look at available listings. It’s an easy process that will save time and expedite your home-buying process.
2. Homes might be in short supply.
We already mentioned that many areas across the country are in the midst of a seller’s market. In addition to high prices, this also means that housing inventory is low. Get that preapproval in hand and be patient. You never know when your ideal home will appear!
3. Bidding wars are happening.
Fasten your seatbelt, and be prepared to compete for the home you want. Bidding wars often end with the buyer paying higher than the asking price. If that’s you, it’s OK. It’s also OK to walk away and wait for another opportunity.
4. Don’t be afraid to negotiate.
You’ve scored the home you had your eye on, but you ended up paying over the asking price. You can still negotiate a deal. Use the results of a thorough home inspection to guide your requests for repairs, closing costs or a lower price.
5. Learn about mortgage options.
Let’s make 2021 your year to experience real estate success! Contact MortgageDepot today to learn more about financing your next home.
Connect with one of our loan consultants to get more information.