A bidding war is just one of the many challenges you may face when buying a home. A bidding war occurs when more than one buyer submits a bid for a house.
When this happens, the seller can sit back and let the buyers bid against each other, driving the price up. The last thing you want is for the price of a house to go up, so you’ll want to avoid a bidding war if possible. The best way to do this is by making sure your initial offer is a strong one.
You can do that by doing the following:
- Avoid lowballing the seller – Don’t try to lowball the seller. When you do this, you waste valuable time, giving other buyers a chance to submit a stronger offer. Make an offer you think the seller will actually accept. This can reduce the risk of a bidding war.
- Make your offer quickly – Buying a house is a huge decision and one that people typically want to think about first. However, the longer you take to make up your mind, the more likely it is that someone else is going to come along and submit a bid. If you see a house that meets all your needs, you should make your offer quickly. The faster you submit a bid, the more likely you are to avoid a bidding war.
- Provide proof of funds – Proof of funds (such as a mortgage pre-approval) strengthens your bid. Sellers are more likely to accept offers on the spot if they know the buyer has the money.
- Remove contingencies – Removing certain contingencies, such as minor repair requests during the inspection, can move the process along and prevent new buyers from coming into the picture.
Use these tips to avoid a potential bidding war when buying a home. For more advice on navigating the real estate world and buying a new home, contact us at Randy Lindsay today.
Anyone considering buying a home should seek the assistance of a professional real estate agent. You can find listings online, attend open houses, and schedule private property tours on your own. But the home-buying process is much more complicated than it may initially appear.
Here are 5 reasons why buying a home without an agent is a bad idea:
- Negotiating is difficult – Knowing how to negotiate can save money. An agent has experience negotiating and can potentially help bring the price down or improve the terms.
- The closing process is complex – There’s a significant amount of paperwork involved in buying a house. An agent can guide you through the closing process.
- You might overpay – An agent is going to have a much better idea of what the value of any given house is based on the local real estate market. It has much to do with the demand in the area for that type of property.
- You won’t know anything about the area – Local agents can provide you with important information about a neighborhood, such as how safe it is, if any construction is planned in the future, what the school district is like, and more.
- You’ll waste too much time searching – You can find listings online, but you may end up wasting a lot of time looking at houses that don’t match your needs. Agents use networking to find houses that match your needs and budget. They can also show properties that may not have been listed yet.
Buying a home without an agent is rarely a good idea. To speak with a professional real estate agent, contact us at Randy Lindsay today.
Buying a home that needs work is often known as buying a “fixer-upper.” One of the reasons why many people buy fixer-uppers is because they tend to be cheaper; you will need to spend money on renovations or remodeling. If you know what you’re doing, you could save money. In fact, many people will “flip” fixer-uppers they have purchased for a profit once they’ve completed renovations.
Here are 3 things you should take into consideration if you’re thinking about buying a home that needs work:
1. How Much Work is Needed?
When buying a home that needs work, make sure the home’s structure is in good condition. If the foundation or roof needs to be replaced, then you could end up spending much more money than you realize getting the house into good shape.
If the work that needs to be done is mostly aesthetic, such as replacing the kitchen cabinets or the flooring, the cost of doing so might be offset by the money you save on the home’s price. If too much work is required, the initial price may not be worth it in the long run.
2. How Much Time Do You Have?
Renovating a fixer-upper can take a long time, especially if a lot of work is required. You need to have patience because you may find other things that need to be fixed as you renovate. This can be problematic if you need to move in by a specific date.
3. How Much Work Do You Want to Do?
Besides repair work, there may be additional renovations that you want that aren’t necessary, such as adding rooms or additions to the house. Remember that you may need permits from the city as well as permission from your HOA to do so.
Keep these 3 things in mind when buying a home that needs work. Contact us at Randy Lindsay for more advice about buying a home.
Before the pandemic, 2020 seemed like as good a time as any to buy a home. Now everything has changed.
During spring, buying a home was not a realistic possibility since most states were under lockdown. Now that states are opening up again, you may be wondering if now is a good time to buy a home. Or should you wait?
Here are 3 things to keep in mind as you decide if now is a good time to buy a home:
- Interest rates are lower – Meanwhile, interest rates are lower than ever! Average interest rates on thirty-year mortgages are around 3.25% with about 2.74% on 15-year mortgages.
- Lenders are becoming stricter – Lenders aren’t quite as willing to give out loans because the pandemic has negatively affected the economy. Their credit requirements may be stricter as well. You’re going to need to be in a strong financial situation (be financially secure and able to put down a larger down payment). If you are financially stable and your credit is solid, this shouldn’t be an issue.
- There aren’t as many sellers – Many homeowners removed their homes from the market or simply decided not to list their houses as a result of the pandemic. Financial situations changed for many sellers, which means moving may no longer be an option for them. Other homeowners simply don’t want to deal with finding another home in the middle of a pandemic.
The real estate landscape has altered significantly due to the pandemic. Depending on your situation, now might be a very good time to buy a home. For more advice, contact Randy Lindsay today.
Those in the market for a house would like to take their time finding a new home. Unfortunately, time is not always on our side. Some buyers may be relocating or have sold their current homes, which means they have little time to shop for a new house. If this is your situation, the following are a few home buying tips to help you speed up the process:
- Get pre-approved – The mortgage approval process can really slow things down, especially if you’ve found the house you want to buy. If you get pre-approval, you will know exactly how much you can finance. You’ll be able to close much faster.
- Know what you need – Figure out what your needs are right off the bat. This way, you can instantly eliminate homes on the market that don’t meet those needs. Don’t waste time looking at them or trying to make a decision.
- Look in areas with high inventory – The bigger the inventory of houses available, the more likely you’ll find one that meets your needs. You’ll also have less competition in these areas.
- Work with a real estate agent – A professional agent will understand you’re pressed for time and will help connect you with sellers who are also looking to sell quickly. When working with an agent, you’ll find the home buying process will go much quicker: They can find properties that fit your specific needs while also acting as an intermediary with sellers and their agents.
Use these home buying tips if you need to find and buy a new house quickly. To speak with a local real estate agent that can help you, contact us at Randy Lindsay today.
Buying a home is a lot different these days than it was a decade or two ago. Millennials currently seeking to buy a home for the first time need to keep a few things in mind before they take the plunge.
The following are five tips to make the home buying process easier for millennials:
- Buy during the right time – Research the local real estate market. The best time is a buyer’s market, which means there are a lot of sellers and fewer buyers. As a result, you’ll have more room to negotiate and less competition.
- Know the true homeownership costs – Mortgage payments won’t be the only financial burden of homeownership. You’ll also pay:
- HOA fees
- Homeowner’s insurance
- Mortgage insurance
- Property taxes
- Utility costs
…and more. Keep this in mind as you develop your budget.
- Pay off your debts first – Many millennials have large college loan debts. If you have any outstanding debts in your name, try to pay them off before you apply for a home mortgage, or you could find yourself financially strained.
- Save up for a down payment – The bigger your down payment is, the less your monthly mortgage payments will be. Your interest rate will be lower as well. By saving money so you can make a larger down payment on a home, you’ll save more money.
- Understand the closing costs – There are more money responsibilities after the down payment. You’ll be expected to pay for a variety of closing costs, including loan-related and property-related fees. Typically, closing costs account for 2-5 percent of the total cost and must be paid at the time of closing.
These are five tips of which all millennials should be aware when buying a home. For additional first-time home-buying advice, contact us at Randy Lindsay today.