THINGS YOU MAY NOT KNOW
So, you’re ready to buy your starter home, there are a few things you may not be prepared for. I love surprises but this is not the time!
Anyone that knows me, knows that details are my thing, I would love to help you understand the market and be prepared!
Steps you MUST take BEFORE you start looking:
- Set your budget. Let’s discuss what you want your monthly payments to be and we can work backwards.
- Find a lender. I have great recommendations if you don’t have one yet.
- Have proof of funds ready to send.
- Get pre-approved and set your price range.
- Get an official pre-qualification letter from your lender.
Not sure what all of this means? Reach out and I will explain the process.
What to EXPECT when you begin your search:
Starter homes are in high demand and competition for these homes is higher than it has been in over 50 years. You may be hearing that this is due to low inventory or homes on the market. This is only partially true. The number of new listings is right in line with 2018, 2019, and even 2020. What you should be hearing is that the inventory is not sufficient for the increase in FIRST TIME home buyers.
Therefore, the number of days the house sits on the market are significantly lower, driving competition. I have been working with many first time home buyers and this is the scenario I am seeing:
A house that is listed on a Thursday or Friday and holds an open house over the weekend, will receive 15-20 offers by Sunday night and be pending by Monday. Some even have 3-5 offers before the house is even active on the market, before buyers have even had a chance to see it! That is only 3-4 days from Active to Pending. Be prepared to write an offer as soon as you see the house. Be prepared that you may not get the first house you make an offer on – so you are not disappointed. Be prepared to write offers on multiple houses.
So, what do you do??
There are many ways to STRENGTHEN your offer.
I can recommend a long list of strategic options for you to consider when writing your offer. We have found success in staying competitive even if you don’t have a large down payment or can’t make the highest offer. Reach out to me today!