Up, up and away is something my first time home buyers are now crying. After doing pre-qualification work, then shopping for their first home, it all comes down to offers. Some of what they see, and like, while shopping is beginning to get “scooped-up” quickly. They are starting to see the trends of upward prices and limited inventory. That’s good news for sellers, but not especially for first time home buyers on a tight budget. How you can get ahead of the rest of the buyers is to be prepared. Here are a few tips to keep it straight and get it done:
- Have your pre-qualification letter ready, printed and in the hands of your Realtor.
- Have your good faith deposit ready to go. Not, I will have it when I get paid next week. Set it aside and be ready when you find that perfect home. In today’s market of “bank owned” properties, the typical deposit requirement is $1,000.00. That is CASH. Not money they will “take out” at closing. You need CASH, today, to write the offer.
- Probably the most important tip, do not shop out of your budgeted amount. Last year this would have been different. Everyone was shopping in a bit higher price range because you could get deals. Today, the prices have corrected to the point that banks are marketing the property at prices that are bringing in multiple offers. So, if your budget will not allow a full price, or sometimes, an over full price offer, expect to be disappointed when the offer is rejected or outbid by another buyer. This disappointment can lead to a deflation in spirit and sometimes can turn a buyer to renting longer.
- Roll off disappointment and start over. The best thing to remember is the ultimate goal – owning your home and not paying rent. We all know the foreclosure market has led to more renters and higher rent prices. Don’t get caught in the disappointment of losing a bid on a home. It’s a lot of work to shop, and write offers, etc. for all parties involved; but so worth the reward when you finally accomplish your goal.
Get it done should be your mindset when shopping for a home. With the proper planning it should not be hard to accomplish your goal of buying a home. So don’t let that perfect home go up in price, up in a bidding war, and away from your hands! Get it done!
See an inventory of the area’s homes here: