How to Buy a Home During the Housing Shortage of 2013

It’s no secret that home values are starting to increase as we start off the year 2013.  In addition to the raising values, it appears that a shortage of homes on the market is upon us just before the spring selling season.   The amount of people wanting to purchase a home largely outnumbers the available homes for sale.  Needless to say, competition for homebuyers will be fierce in 2013.

Sellers have the advantage right now – they could potentially end up with a higher amount than their asking price.  However, sellers are also waiting for the home values to increase more before listing their homes, thus creating a shortage of houses for sale.

So what can you do to gain an advantage in home buying during this tight market?

First off, don’t spend more than your budget allows.  It’s easy to get caught up in the hype and up your price range, but remain realistic about what you can actually afford.  Owning your dream home will do you no good if you will just foreclose on it right away!

That being said, make your best offer right away.  There will be multiple offers coming in on the house you want, so make sure your offer outshines the rest.  Always do your “best and final” offer in these situations, that way even if you don’t get the house, you won’t feel bad for not offering the most you could realistically pay.  The time for low-balling sellers is over, but that doesn’t mean you have to overpay for a home.  Use your best judgment.  When looking at the big picture, are you going to obsess over that extra $3,000 you spent in order to land that house?

It’s also a good idea to check your credit score before making an offer or getting approved for a loan – this way you will have more grounds to negotiate interest rates and closing costs.  After obtaining your score, get yourself pre-approved for a loan.

Most importantly, if it is possible for you to put down a down payment of 20% or more, by all means do it.  Although there are plenty of loan options out there that require little to no down payment, it doesn’t guarantee that you’ll get the house you want.  The larger down payment will be what ultimately persuades the seller to accept your offer.

By using these helpful tips, you will have a great advantage in buying the perfect home this year.  Call me at 262-696-5045 or email me if I can be of further assistance to you in the process!

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