If you’ve been on the market to purchase a new home, it’s no secret that there’s a lack of inventory across the nation. The real estate market has seen exponential growth over the past two years, leading to record high home prices and record low inventory. But, how did we get here?Verify your mortgage eligibility (Sep 27th, 2022)
Even Pre-Pandemic, new home construction dropped sharply for several years. Less construction, leaving fewer homes for buyers to choose from. Once the pandemic came, new home construction came to a halt while the majority of industries were placed on pause, lumber prices sky-rocketed, and new home production slowed even further.
Over the course of 2020 into 2021, mortgage interest rates reached historically low levels. This made it a great opportunity to refinance rate and term, cash out refinance or purchase a home. Buyers took advantage of both of these options, and entered the market with an emphasis on the emotional value they were investing into their homes.
Limited new construction homes coupled by a wave of new home buyers led us to the real estate inventory crisis that we’re experiencing today – leaving buyers frustrated and burnt out. Luckily, here are 3 ways that you can arm yourself to stand out from the rest, and get an offer accepted on your dream home.Verify your mortgage eligibility (Sep 27th, 2022)
Navigating a Low Inventory Housing Market
You’ve made the decision to purchase a home, but where do you go from there? Here’s some tips to make it happen in today’s real estate market.
- Write a Strong Offer
Maybe one of the most crucial parts of buying a home is making sure that you write a strong offer to the seller. Make sure you’re not adding an abundance of contingencies to your offer! A contingency is any additional criteria the seller needs to meet before the transaction is complete. Contingencies typically slow down the home buying process, so make sure you’re only adding those that you find absolutely necessary. If you’re on the fence, check with your agent about what contingencies you have included.Verify your mortgage eligibility (Sep 27th, 2022)
Remember, you want to do what you can to make your offer the easiest for the seller to accept, so shortening inspection deadlines, including your pre-approval, and being motivated and flexible to get to close as soon as possible can all work in your favor.
- Strong Mortgage Pre-Approval
Including your letter of pre-approval can significantly increase your odds of an accepted offer, and what better place to start than here! A pre-approval not only gives you a better understanding of what you can afford for your monthly mortgage payment, but shows a seller and the seller’s agent that you’re motivated and able to purchase their home.
- Build a Strong Team
Who can make all this happen? A strong, dedicated team of support to get you to the closing table. Not only can working with a GTG Financial loan officer can help increase your odds of an accepted offer, but having a buyer’s agent to help you navigate the market, too. They can show you homes before they hit the market, help write offer letters, and so much more. Make sure you take the time to research who you’re putting on your team – they’re important!Verify your mortgage eligibility (Sep 27th, 2022)
- Search in New Areas
This might not be an option for everyone, but if you’re not having any luck finding a home that you love in a certain area, try another! Home prices and inventory levels can widely vary between one area and another. Talk with your real estate agent about what other areas might suit your needs.
Building Your Dream Home
If you’ve exhausted your other options, or knew from the start you wanted something from the ground up, then build your dream! GTG Financial has access to builder financing products and strong builder relationships to help you finance the home of your dreams.Verify your mortgage eligibility (Sep 27th, 2022)
Making It To The End
Purchasing a home can be both exhausting and exciting, but try not to get burnt out by today’s market! Working with a dedicated support team and setting yourself up for success can get you settled into your dream home in no time.