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Things To Consider When Buying a Home
Bindya Nagrani
Real Estate Consultant
Rod Aluisi Real Estate
Fresno, CA
[email protected]
www.BindyaNagrani.com
(559) 936-1712
Real Estate Consultant
Rod Aluisi Real Estate
Fresno, CA
[email protected]
www.BindyaNagrani.com
(559) 936-1712
If the pandemic and the changes we’ve faced recently have made you seriously think about buying a home instead of renting one, you’re not alone. You may, however, be wondering if the dollars and cents add up in your favor as home prices continue to rise. According to the experts, in many cases, it’s still more affordable to buy a home than to rent one. Here’s why this is the case today.
ATTOM Data Solutions released the Q1 2021 Rental Affordability Report, which states:
“Median home prices of single-family homes and condos in the first quarter of this year were more affordable than historical averages in 52 percent of counties with enough data to analyze.”
The answer: historically low mortgage interest rates. ATTOM Data Solutions explains:
“Rising wages and falling mortgage rates still compensated for near-20 percent spikes in home prices over the past year, helping to keep median home prices affordable for average wage earners around the country.”
These low rates are a big factor in driving affordability. The report also notes:
“With workplace pay rising and home mortgage rates continuing to hit historic lows, major expenses on a median-priced home nationwide still consumed just 23.7 percent of the average wage across the country in the first quarter of 2021... It remained well within the 28 percent, standard lenders prefer for how much homeowners should spend on those major expenses.”
If you’re considering buying a home this year, let’s chat today to discuss the options that match your budget while it’s still such a good time to buy.
Here's a list of several common terms in the homebuying process.
The best way to ensure your homebuying process is a confident one is to find a real estate pro who will put your needs first and guide you through every aspect of the transaction with 'the heart of a teacher'
Source: Freddie Mac
1
Create a budget and do your research. There are lots of low down payment options available.
2
Learn your score and clean up outstanding debts like student loans and credit cards.
3
Contact a local professional to guide through the process.
4
Differentiate yourself as a serious buyer and have a better sense of what you can afford.
5
Work with your agent to find a home in your budget that meets your needs.
6
Determine your price and negotiate the contract.
7
Address any hidden issues in the home with the seller.
8
Ensure the property is worth the price you are prepared to pay.
9
Schedule a closing date once the loan is approved so you can sign the final paperwork.
10
You're a homeowner.
Consistency is the name of the game after applying for a mortgage. Be sure to discuss any changes in income, assets, or credit with your lender, so you don't jeopardize your application.
Don't change bank accounts.
Don't apply for new credit or close any credit card account.
Don't make any large purchase.
Don't deposit cash into your bank account before speaking with your bank or lender.
Don't co-sign other loans for anyone.
The best plan is to fully disclose and discuss your intentions with your lender before you do anything financial in nature.
Today’s real estate market clearly has high homebuyer interest and low housing inventory. With so many buyers competing for a limited number of houses for sale, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.
An article from Freddie Mac offers guidance on making an offer on a home today. Right off the bat, it points out how emotional this can be for buyers and why your trusted agent can help you stay focused on the most important things:
“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”
Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to get pre-approved for a loan early in the homebuying process. Be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious and qualified buyer and can give you a competitive edge if you enter a bidding war.
According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property sale today receives five offers and is on the market for just a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to submit an offer as quickly as possible.
It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:
“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”
After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. You can strengthen your position with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Freddie Mac explains that there are, however, certain contingencies you don’t want to forego:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Today’s competitive landscape makes it more important than ever to make a strong offer on a home. Let’s connect to make sure you rise to the top along the way.
We help with all disclosures and contracts necessary in today's heavily regulated environment.
We are well-versed in real estate and experienced with entire sales process.
We act as a buffer in negotiations with all parties throughout the entire transaction.
We simply and effectively explain today's market conditions and decipher what they mean for you.
We help you understand today's real estate values when setting the price of a listing or making an offer to purchase.
Real Estate Consultant
Certified Luxury Home Marketing Specialist
Rod Aluisi Real Estate
Fresno, CA
[email protected]
www.BindyaNagrani.com
(559) 936-1712
Bindya's mission is to provide old fashioned service with today's technology to provide client focused real estate service, education, and guidance that will enable you to reach your unique real estate goals with the least amount of frustration and have you feel like you are her only client.