As the weather heats up, so does the housing market. Now that we are halfway into 2018, we’ve identified two important factors for buyers and sellers in this year’s market: low inventory of homes and low mortgage rates.
Low inventory. This means the supply of existing homes on the market is low, compared to the demand from homebuyers, which has created a seller’s market.
Low mortgage rates. Though rates are slightly higher than last year’s rates they are still at historic lows.
We asked the mortgage experts of Resource Financial Services for their advice on buying a home in this seller’s market. The first and most important piece of advice is that homebuyers should be prepared to act quickly.
“Make sure you are pre-approved for your loan,” said mortgage banker Jennifer Bowie. “This makes you a qualified buyer, which is more attractive to sellers.”
At Resource Financial Services, we underwrite loans up front, which gives you early approval on your loan and cuts down on the time it takes to close. This means you can move faster, which can make the difference between buying the home you love or losing it to someone else in a tight seller’s market.
Here are the expert’s tips on navigating the 2018 real estate market.
If you’re buying
• Work closely with a realtor and mortgage banker who recognize the need for speed. You don’t want to miss out on an offer because another buyer was faster.
• Get your mortgage banker to prequalify you so you know how much house you can afford from the start. This empowers you to write a purchase contract.
• Lock your mortgage rate now. Rates could head higher before the year is out.
• Don’t expect drastic discounts even if the property needs work. Most sellers already realize the home needs work and have accounted for it when pricing the home. Trying to discount an already discounted home could cost you the home you love.
If you’re selling
• Even though it’s a seller’s market, don’t price your property too high. Aim for the high end of the realistic range. There is an ideal time frame in which to sell a home and it usually falls within the first few months the home is on the market. Too many days on the market means you may have to reduce the price lower than market value to get the sale.
• Work with a broker who focuses on presentation – staging and decluttering – and gives you consistent feedback. Anything that can differentiate your property will be of great value.
• Make sure your home has superior web exposure and is presented well. Almost 85% of buyers use the Internet to search for a home.
Now is a great time to get into the market. If you’re thinking about buying or selling soon, contact your Resource Financial Services mortgage banker to discuss your home loan options.
Resource Financial Services exists to make people’s dreams of home ownership a reality. The mortgage lender offers experienced mortgage specialists who work hard to educate homebuyers about the wide variety of loan programs that can be tailored to meet individual financial needs. Homebuyers can expect quicker closings, same-day pre-approval, five-day processing and guaranteed lower rates.
We’re excited to help you find your home, find your loan and get cash back. Start searching for the home of your dreams online at rfsmortgage.com. Call toll-free at 877.797.4545 to speak with a mortgage banker.
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