It is still possible to get a great deal when buying a home in a hot market. You will need to be flexible with regard to location. You may also need to look at the hottest features of the market and work to buy a home with less popular features. For example, many older citizens are downsizing into one level homes where they can retire in place. A split-level or multi-story house may linger on the market and you could get a deal.
Get Pre-Approved to Strengthen Your Offer
Take the time to get pre-approved before you start shopping. Once you find the right house, the purchase process will be quicker and easier if you have already done the majority of the paperwork. Experts recommend getting your financing parameters defined 90 days before you buy.
Pre=approval is also a great way to gain information about what’s possible. If you can’t find anything you like in your price range, you may need to:
Search nearby towns
Look for a smaller house
Put off your search and work on your finances
If you get your pre-approval numbers and find multiple houses within your targeted living area, it’s time to find a realtor.
Be Flexible with Location and Home Features
Experts once recommended that you buy the smallest house in the best neighborhood you can afford. You can also find a home in a neighborhood that is coming back. If you know of a new shopping center or business park going into an older neighborhood, it’s time to take a look at houses in that area.
Don’t be put off by homes that are less than pristine. Ugly kitchens can be made usable with paint and elbow grease. Dirty, worn carpet can be replaced quickly. If you’re looking at an older neighborhood with large yards, you may be able to find a lot and build a new home to suit your needs!
Budget for Rising Interest Rates and Hidden Costs
Once you find the right house or lot and start the purchase process, you need to lock down your household budget. It may be very tempting to shop for new furniture, carpet, tile and paint. However, interest rate changes may impact your available dollars and there will likely be fees involved before you can close on your purchase.
Once you find a home, you need to focus on:
Sorting and packing your current possessions
Using any consumables you may have stored in your current home
Putting away cash and paying down debt
Your credit score may change between putting a contract down on a house and signing the final papers. Make sure it goes up!
Once you own your house, take the time to live in it. Paint if you want to; replace flooring that is worn. Before you start moving walls or making other large changes, make sure that the mess and disruption of a large renovation will be worth it.