Those who are seeking to buy their first home this summer may face some stiff competition due to the market’s current state. We are experiencing a seller’s market, but this shouldn’t deter anyone their home owning dreams. Here is what you should know if you want to buy a home this summer:
Don’t be a victim of the HGTV effect, which is common amongst first-time buyers. They believe the home buying process is as simple as looking at three homes and then choosing one within the same day. In reality, you may not be too keen on the first three homes you view. Shopping for a home can be a long, tiresome, and frustrating process.
Don’t bite off more than you can chew
Experts recommend that you get pre-approved before you begin house hunting. Once you’re pre-approved, you’ll know your budget and how much you can afford. Determine a ceiling to your budget and don’t go past it. A big mistake many first-time buyers make is they surpass their budget for a home they love, not taking in account the extra fees and payments.
Play it cool at the open house
You will be filled with joy once you find your dream home. When excited, some people tend to overshare. It is important to be friendly with the listing agent and to develop a rapport, but be mindful of how much you tell them. They may use the information you give them to negotiate against you. For example, if you are moving to the area for a new job or receiving help from a parent, they may fear that you can’t secure financing. You want to come off as someone who is easy to work with and who will make the process smooth.
Prepare for rejection
Due to stiff competition, sellers have the upper hand. Many first-time buyers don’t receive their offer. Don’t get discouraged by the rejection, but know that it will get easier as time goes on.
Lay low once your offer has been accepted
You will be elated to hear you’ve been accepted, but you should continue to stay away from any big purchases. Once banks begin the process, they will scrutinize your purchases and anything too big will affect your closing.