Spring and all its glory is right around the corner—just take a
look at the signs all around you.
No, we’re not talking about the budding flowers or the chirping
birds—we’re referring to those “For Sale” signs that start popping up on lawns
across the country as the weather starts heating up.
And once the home-buying season commences … so do the bidding wars
and mad dashes from one open house to another.
Since the housing market can be a tricky one to suss out, we asked
agents across the country to give us their assessments for this season’s real
estate landscape.
Their overarching observation? This will be a competitive
home-buying season—so if you snooze, you may lose out on that four-bedroom
colonial you’ve been eyeing.
“The major pitfall is lack of preparation,” says David Yocum, a
Redfin real estate agent based in Chicago. “The [housing] recovery appears slow
due to a lack of inventory and a low participation rate among first-time
buyers, but it’s still a competitive seller’s market.”
Spring House-Hunting Tip #1:
Close That Laptop—and Canvass Old-Fashioned Open Houses
These days, using real estate sites to explore your options is par
for the course: 90% of people search for listings online during their
home-buying process.
Kicking off your search online is a good move, but don’t dawdle
too long behind the computer screen—inventory is expected to be tight in many
major markets, so you literally want to hit the ground running.
“In our market we hope for a burst of new inventory in the spring,
but that doesn’t always happen,” says Richard Seaton, vice president at TTR
Sotheby’s International Realty in the Washington, D.C., area. “Even if that
burst comes, demand will outstrip supply, so buyers have to be in a position to
make a decision quickly.”
Spring House-Hunting Tip #2:
Educate Yourself on Market Values and Trends
“Buyers need to get up to speed quickly on market values so they
know the right decision when it presents itself,” Yocum says. “The more quickly
buyers can educate themselves, the more successful the home search will be.”
This, of course, is where it’s really all about location,
location, location. According to the Case-Shiller 2014 home price index, San
Francisco saw the largest annual regional gain at 9.3%, while other major
markets—like New York, Chicago and Washington, D.C.—saw less than 2%.
Spring House-Hunting Tip #3: Nab
Low Mortgage Rates—Now
Another reason not to dawdle too long? You want to take advantage
of low interest rates while they last.
“Mortgage rates are still historically low, allowing buyers to
wrap up the most house their money will afford them at payment levels that
should be affordable for decades,” Yocum says.
In fact, interest rates are so low that, in many markets, monthly
mortgage payments are less than rent, adds Seaton. “Most predictions are that
the fabulously low interest rates will stay that way through the spring, and
that the variety of loan packages available to buyers will continue to
multiply,” he adds.
Spring House-Hunting Tip #4:
Build Your Home-Buying Dream Team Before You Bid
If spring-cleaning season has you in a hyper-organized mood,
channel some of that spirit into your house hunting—in order to be a serious
frontrunner in a bidding war, you’ll need to have all of your ducks in a row.
So not only will you need a savvy real estate agent, but you’ll
also want your lender, inspector and attorney at the ready so you can act fast,
says Yocum.
Spring House-Hunting Tip #5: Keep
Sweeten-the-Deal Moves in Mind
So you’ve finally found that dream Tudor on a half-acre—but you’re
stuck in a bidding war with another equally prepared buyer. How do you win by a
nose?
For one, include an escalation clause, along with your offer,
suggests Seaton. This is an amount that you’d automatically be willing to pay
above a competing bid.
For example, let’s say you add an escalation clause of $3,000 to
your bid of $200,000. If a second offer comes in at $205,000, your bid would
get bumped to $208,000. If you’re in a hot market, a significant escalation factor
could really pique seller interest, Seaton adds.
More related info? Westhills Consulting
will here for you. Westhills offers a wide variety of innovative housing styles
and options. Whether you’re looking for a 3, 4 or 5 bedroom home with or
without a suite, a townhome or our new and innovative small footprint home,
you’ll find it at Westhills.
Follow us on Twitter @WesthillsCBC for
more updates.
No comments:
Post a Comment