Buying Strategies For Seller’s Markets
One of the most popular shows of the year was the Queen’s Gambit. For those who do not know, the Queen’s Gambit is a Netflix series about playing chess (kind of). See, chess is one of the best games one can learn, as it helps create strategies and problem solving skills. If you do not have a plan or a strategy going into the game, chances are you will lose. This is very similar to the homebuying process. Buying a home, especially if it is your first time buying, can be a daunting task if you go in blind. However, if a potential homebuyer can create a strategy or plan, you can be in for the win. Below we will cover a few buying strategies for a seller’s market.
While the mortgage process might seem scary, this is not the case. Even with rates fluctuating over the past few weeks, mortgage rates are still historically low. I will continue to beat this drum until people under that rates below 4% are still below the decade average. So, do not be scared of rates above 3%, as these are still a deal.
The best strategy to have going into buying a home is being prepared. Being pre-approved is one way to be prepared as a buyer in a seller’s market. To bring it back to our chess analogy, being pre-approved is the best opening move you can make as a buyer. Reaching out to your lender before starting your home search can save a lot of headache and time. Pre-approval isn’t the same as pre-qualified, however, it is the first step in buying a home. If you aren’t pre-approved, you shouldn’t start your home buying search.
More Than Just A Pre-Approval
According to Freddie Mac, “The pre-approval letter from your lender tells you the maximum amount you are qualified to borrow. Getting a pre-approval letter is not a loan guarantee, it simply states how much your lender is willing to lend you. . . .” Knowing just how much your lender is willing to lend you is a great start to the home buying process. This is where we recommend starting your game of chess, aka buying a home.
Not only does a pre-approval letter start your home search, but it also shows that you are a serious buyer. Just like in chess, a strong opening move shows your opponent (seller) that you are meant to be taken seriously. Being able to send a pre-approval letter over with your offer should be part of your strategy. According to Freddie Mac again, “This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.” If you want to start your home search, you can do so by visiting our website with all the listings in Louisville and surrounding areas.
Buying Strategies SHOULD Involve A Team
Taking the right steps to start is important. However, every step of your strategy is just as important. Especially in this seller’s market, every step of your strategy should be as precise as your first. While mortgage rates are still low, they are generally seen as increasing in the eyes of experts. Home prices are also surging, and this trend does not look to be slowing down. Even with the seasonality of real estate, there is potential for another winter sales surge due to waiting buyers and low inventory.
With the quickly changing real estate landscape, it is important to have the right people in your corner. Like we mentioned in the previous paragraph, every step is just as important as your first. Having a team of professionals, such as a real estate professional and qualified lender, can make your strategy fool proof. With a team in your corner, the possibilities are endless. Well, almost endless. Your imagination and budget will limit the possibilities, but you get the point.