Things to avoid as a buyer
Do you have your heart set on a new home? Well, as the summer months approach it may be the right time to submit an offer. But before you get too excited, the market is not showing any signs of slowing down. Here are my top tips for buyers trying to secure a home this summer.
Know what you can afford.
There’s more to buying a home than just the sales price. Changes in your interest rate can really add up. Even a small increase in that percentage can mean the difference in thousands of dollars in purchasing power.
Mortgage rates are the lowest they’ve ever been and if you’re pre-approved you’ve locked in that low rate for three months. But as interest rates start to climb your pre-approval amount may decrease once your pre-approval expires, eroding your purchasing power. [Not to mention changes in the stress test that came into effect 1 June 2021.] So if you're planning on putting in an offer, be sure to have a current preapproval and touch base with your lender about how changes in the stress test might have affected your upcoming purchase.
Don't skip the pre-approval.
The market is cutthroat right now and homes are selling within days of being listed. So if you see a property you want, you’ll have to offer on it ASAP. You may not have time to get a formal pre-approval from a lender between the time a property is listed and the offer deadline and this is something that most sellers will want to see along with your offer.
Don’t get your heart broken by scrolling Viewpoint, waiting to get pre-approved, or putting off finding an agent. If you find a home you love, you HAVE to be ready to act fast.
Don't offer the minimum deposit.
When you’re buying a home, your mind is wrapped up in a million different things. But if you’re buying in a hot seller’s market, you’ll want to spend some time thinking about deposits.
When you make an offer on a house, you will be asked to provide a deposit which is a promise to the seller that you won’t dip out on the purchase process.
A minimum of 1% of the offer price is expected for a deposit but a larger deposit will make the sellers take notice. That can make a big difference if your offer is swimming in a sea of other similar offers. The good news is that the deposit will form part of your down payment on closing day.
How much exactly should you put down as a deposit? That really depends on how much you’re offering for the property, what you can afford and how long the closing is. Talk with your agent to develop the right deposit strategy for you.
Work with an expert.
One of the most common real estate myths is that all real estate agents are the same. This myth can lead to buyers and sellers making big mistakes when selecting a real estate agent to represent their interests. Every agent has different skills, different experience levels, and different traits.
Make sure you work with someone who understands how the industry is right now, what pitfalls to look for and how to protect you during your viewings and purchase.
If you're thinking of entering the market and aren't sure what to start or how to craft an offer that gets accepted, hit reply to schedule a buyer's consultation.
If you're thinking of entering the market and aren't sure what to start or how to craft an offer that gets accepted, contact me to schedule a buyer's consultation.