The sunniest time of year, when the sun shines brightly, is certainly a great time to explore new neighborhoods and envision future patio parties during visits. If you plan to buy a home this summer, it’s important to understand the real estate market before beginning any serious purchasing. You should know what the real estate market is like for buyers now and what you can do to get the best home at the best price that fits your budget perfectly.
Owning a home is an investment in your future, and with that in mind, you want to make sure you make informed decisions so you can get the best deal possible. The housing market in 2018 should be as strong this summer as it has been all spring. List prices and sales of existing homes have increased this year, but there are also advantages to searching for a home right now. Here are some of the facts and tips that will help you make the most of this year’s summer real estate market.
SUMMER MARKET DATA
DURING THE SUMMER PRICE LOWER: Although summer is a busy season for home buying, it’s not crazy as prices drop from May to October. Anyway, if you stay until the end of August, you can find a really good deal; That’s when almost 14% of listings get a discount.
Private mortgage insurance is INCREASINGLY reliable: PMI or private mortgage insurance is getting cheaper after PMI lenders MGIC and Radian lowered their rates this spring; It’s great financial news for homebuyers. That will make most of these PMI companies competitive with each other, which, as a result, will bring them all down. Less than 20% down earns homebuyers PMI. It means some buyers will find it cheaper to purchase homes sooner.
TIPS FOR BUYING A HOUSE FOR SUMMER 2018
DO NOT DISCOUNT OLD ADS: At a time when homes are flying off the market in a matter of days due to stiff competition, it’s easy to think that a listing that’s about a week old is a red flag. But keep in mind that this is not always the case. It’s often because the buyer backed out and walked away from a deal on a perfectly good home. But thanks to the assumptions home buyers make about older listings in crowded markets, the delay can drive the price down.
There are simply more of these on the market. The number of homes on the market is shrinking, but there are still 8.3% more homes in need of repairs than there were six years ago. If you’re set on fixing up a fixer-upper so you’re prepared to move quickly, then there will only be a couple of options at a time. And when new listings appear, it will be pretty fierce.
GET TO KNOW THE NEIGHBORHOOD: The positive point of the competitive market is that you are tempted to make an offer on any available property that fits your criteria, but if it is in the wrong neighborhood, you may never want to buy the house. It’s best to take some time and explore the community before making an offer. You can even find out what your future neighbors have to say about the area by reaching out to them.
MAKE THE STRONGEST OFFER: To stay in the market, make the strongest offer, even if your offer is not the highest because now is not the time for low offers. Sure, making an all-cash offer could be difficult for many homebuyers, but there are some ways to make a solid offer that doesn’t require large amounts of money. Important eventualities, such as a shorter closing or inspection period, and writing a great offer letter can help your offer stand out.
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