If you are someone who decided to hold off on buying a house over the past couple of years, now is the time to start considering it again. Based on today’s housing market conditions it could be a good time to be a home buyer. Per current data, the supply of homes for sale is rising, so there are more options for you. However, it’s important to be mindful that while inventory is increasing, it is still a sellers’ market. What this means is that you need to think ahead when pursuing a home to purchase.
Here are three tips to help you prepare for your homebuying journey:
- Understand the Impact of Mortgage Rates
Unfortunately, with an increase in inventory, there has also been an increase in interest rates. In fact, mortgage rates have risen significantly this year. It is vital that you stay abreast on what’s happening with rates so that you are cognizant of the impact they will have on your ability to purchase a home. This is especially important when rates are fluctuating, as they have been in recent weeks. You might be surprised to discover the difference it can make in your monthly mortgage payment when the interest rate is just slightly higher. For example, let’s say you are trying to keep your payment in the $2,100 – $2,200 range. If you are purchasing a home for $420,000, an interest rate of 4.75% will keep you within that range, but an interest rate of 5.00% knocks you right out of it, making your monthly payment $2,255. So, understanding interest rates and how they impact your buying power is a crucial step in your home buying process.
- Explore Different Options
While the supply of homes IS increasing, historically, inventory is still low. It’s important to keep that in mind when you start your home search. If you are not finding exactly what you want/need, now is the time to expand your search to more areas. If there are places you ruled out, you may want to be open to taking another look at them. You may also want to consider other types of homes such as new construction, condominiums or townhomes. Casting a wider net may be necessary to find the best option for you and your family. Limiting yourself to one area and/or one style of home might make it very challenging to find a home that suits your needs and desires.
- Work With a Local Realtor
The absolute BEST way to be prepared to purchase a home is to work with a local Realtor. Whether you are just beginning to look for a new home, or you have been searching and found what you are looking for, working with a local real estate professional is the way to go. A professional Realtor will have the expertise to assist you in understanding the local market. They will also have access to new homes for sale, sometimes before they even hit the market. Finally, when it is time to make an offer, their expert negotiation skills will definitely come in handy to help you stand out above other potential buyers.
If you are ready to finally get back out there to find the right home to purchase, educating yourself about interest rates, being flexible in terms of what you’re looking for and utilizing the expertise of a local, professional Realtor are the ways you will have the best chance for success in buying the home of your dreams!
Are you thinking of buying a home or selling your current home in New River Valley, VA? Then it is time to contact Desi Sowers, your New River Valley, VA real estate resource! Give her a call today at 540-320-1328!
Photo credits: forbes.com, moving.com