Is Buying A Home in 2021 Even Possible?

Is buying a home in 2021 even possible? Let’s face it with low inventory, bidding wars, and a race to see the house as soon as it’s listed is what many buyers face in this market. The real question is can it happen? Will I get the house that I love? Yes. Yes, you will, it’s just a matter of when and how long it will take to get you there. How can I be prepared for this adventure? Oh, I’m so glad you asked! We must suit up with some tough combat gear to enter into the war zone. We will need to keep our heads straight when entering the battlefield. We will not sell our soul and later regret it. We meaning buyer(s) and well me as your agent. Here are some things that you can do to prepare yourself for your home search in 2021.

1.      GET PRE-APPROVED with a Local Lender- why local? Local is always best because it's a really important relationship. The Lenders know the loan processors, appraisers, title companies, and work with agents all the time so they will provide you the best service.

·         Goes over affordability - Investing in real estate can be an excellent way to build wealth over time and create an additional income source, but it is also one of the more capital-heavy types of investments you can make. With that in mind, before you start shopping for properties to invest in, it’s important to know that you can afford them before becoming a homeowner. Once you’ve established that you’re ready to invest, the next step in rental property affordability is determining whether you have enough money to purchase a property. This depends on the cost of the property itself.

REMINDER:  Remember that just because you're approved for a certain amount doesn't mean that you have to spend that amount. Work with your lender and your agent to establish a price point and monthly payment that you will be comfortable with.

2. SAVE MONEY- Buying a new house is one of the most (if not the biggest) ​ Investments that a person can make in their life. This can be extremely stressful. 

Saving your money while on your search so you can pay for your deposit, home inspections, closing costs, and your down payment- this helps make your offer attractive and helps reduce stress along the way. 

3. COMMUNICATE often with your Agent - Communication is key in every aspect of life, and it’s especially crucial in the workplace. Find an agent who works full-time in the industry and has a track record.

Great time management and communication skills: An agent who communicates with you in a way that you understand and feel comfortable. Communication is at the center of real estate. Make sure to have constant communication with your agent and discuss with them your needs and wants. And to better improve the communication you may consider asking questions or bringing up ideas and suggestions. 

4. Should be about the market and how to be best prepared to make an offer -   Make your offers count. The craziness about how people are offering $20,000-$40,000 over list price is quite intimidating to most homebuyers. Anyone can offer over the list price but what happens when the bank sends the appraiser out and the appraisal doesn’t equal your offer price? Who is going to make up the difference? Do you want to make up the difference with cash? Do I have you thinking now? How do you make a solid offer? Drum roll, please…. a Market Analysis. This is where the agent pulls comparable recently sold homes and compares them to the one you want to make an offer on. This will help you zone in on what a good offer price is without being too far off!

5. Keep your eyes open - Why do I say this? It is important that when you see the property for the very first time you run through the property disclosures and look through the home for any defects that you come across. This helps as a guide with your offer price. If anything during your showing is intimidating and costly don’t be desperate enough to put in an offer. With the low inventory, you can start to feel frustrated and you may find yourself reasoning with things about properties that were once a “must not have”. This is where the agent comes in with their Superman cape and reminds you of your “must not haves” and “must-haves”. Stay clear of the ugly desperate beast and remember good things come to those who wait.

To sum it up, several factors determine rental property affordability. It isn’t enough to just have enough money in the bank now. You need to be sure that your financial health is strong enough to invest, that you can cover all of the costs of buying a property with some cushion in case things go wrong, that the property won’t deplete your savings after you buy it, and that you’re able to obtain financing. 

Are you ready to be a homeowner? Let me know if you need assistance with your home search. I'm ready, whenever you are!