March Newsletter

You have been searching online since the beginning of the pandemic, desperately looking for more space to accommodate a workstation and school corner in the new normal.

 

Fast forward three years later - today you are still living in the same place, and you are still searching for that dream home. If you feel like you are either wandering aimlessly from house to house, spending countless weekends visiting open houses, or you have been repeatedly outbid, here are some tips to help you with the buying process.

 

With the uptick in demand and low inventory, the competition buyers have faced in the past three years is unprecedented.

 

Before you set out to find your next home, you should first speak to a mortgage professional to find out what price point you should be looking at. Some lenders might offer ‘Soft Pull’ with no credit inquiries, or credit triggers and no points taken off score. Buyers with pre-approvals in hand can now get a second opinion without worrying about hurting credit scores.

 

A well-priced property may not stay on the market longer than a week, but with the pre-approval letter in hand, you can place your bid immediately without delay. Being prepared is your first step.

 

Being outbid multiple times is beyond frustrating.

 

With the spring market just around the corner, there will be more houses coming onto the market. Federal Reserve Chairman Jerome Powell says the Fed is likely to speed up interest rate hikes if the economy keeps roaring. The buying frenzy has slowed a bit since the rate hike. Some overpriced properties have had to reduce the price to attract buyers. With patience, you might get the house at a more reasonable price. Interest rates fluctuate over time, so you can consult with a mortgage professional to refinance your home in the future if the rate goes down.

 

The dream home you have been searching for may not exist. You can create three lists: the non-negotiable list, the bonus list, and the dream list. If a property checks most of the items on your non-negotiable list, it has the potential to become your dream home down the road. In this tight market, you may have to compromise on your bonus and dream lists. Homeowners who sold their homes in the second quarter of 2022 had an average tenure of 5.87 years, according to IpropertyManagement.com. Therefore, the house you purchase today may not meet your needs in a few years. Be realistic with your expectation - you will find that there are more suitable properties for you than you first thought