The real estate market in the United States is booming, and it seems like everyone is rushing to purchase houses. This significant rush to buy homes is far from an illusion. It is a reality. The recent government stimulus emboldened more individuals in response to the pandemic.
The United States government would bring about a slew of programs that provided many individuals with cash. At the same time, the Federal Reserve would decrease interest rates to unprecedented levels. This would enable individuals to lock in low rates on mortgages for a long time.
Those aspects combined with the realization of the value of more space within their homes have pushed individuals to purchase bigger homes. But of course, this means that it is now a sellers’ market. Indeed, there is a frenzy for houses and sellers are undoubtedly pleased about this development. Sellers may even receive $100,000 or more than the asking price in some cases.
This real estate environment may give you a bit of anxiety. You might wonder how you can compete in this new real estate world. It is certainly something important to think about at the present moment.
The following is an overview of the present real estate environment and how you can navigate it without issues.
The Housing Booms Keeps Going
Redfin, a real estate listing platform, noted a few intriguing points. Here are a few of these points:
- The average home sale price is now over $350,000.
- Asking prices are higher by over 9%.
- Most houses were sold within two weeks of going on the market.
- The number of active listings declined by over 20%.
But keep in mind that it is possible to purchase a home in this market. You merely have to navigate it differently. So how can you obtain an edge? What are the ways to push past the barriers that exist? Here are a few ways to prepare to seize the home that you love.
Remember to Get Pre-Approvals for a Mortgage
The key point is to move decisively and as quickly as possible in a booming real estate environment. Sellers will realize that you are genuinely interested in purchasing the home if you have a mortgage pre-approval.
Remember to connect with several lenders and talk about your financing options. These lenders will ask you for the right information. They will assess this information and then provide a pre-approval letter. This letter indicates that you have done the due diligence on behalf of the seller. It shows that you are a viable candidate.
Sellers will know that pre-approvals do not mean that you have a loan in hand but it does show that you can likely get one.
Increase Your Buying Radius
If possible, remember to have several general areas in mind. This broader category allows you to take advantage of more options. If you find that there is much more competition in one part of the metropolis, merely move to the other.
Have a Little Earnest Money
The point of earnest money is to show that you are serious about the deal. If you provide earnest money, the seller will remove the listing. Earnest money provides more security to the seller. You will obtain the earnest money right after the deal is closed.
Be Clear about your Criteria
The problem is that most people do not know what they want. You will find that you are ahead of the pack by being clear. What do you want? Do you need a two story home or a one story? What are some aspects that you cannot live without in your new home? Answer these questions and you will be well on your way.
These are simple but effective ways to navigate the current real estate market.
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