You’ve heard us talking about this a lot lately, but right now is a great time to buy. And, even though we continue to share this with our clients, we also continue to hear the same thing in return…buyers are scared. Specifically, buyers a fearful of the higher interest rates we are seeing, and the price of houses right now. However, there is no need to be fearful.
There are some great options out there for buyers right now and working with the right lender can help you mitigate those mortgage payments and help you save up to $900 monthly.
People are also worried that prices are going down which will affect their equity if they buy now. Prices correlate with interest rates and when interest rates go up, prices do go down a little bit. In 2023 when our rates start going back down, which is projected to happen, it’s going to create the same thing that happened in 2021 and prices are going to go up, creating multiple offer situations.
If you’re a serious buyer in this market, here are 5 things to consider before making a purchase:
- It’s important to work with a realtor when buying a home in a tricky market. They can help connect you with lenders, vendors, and more. At Grant Muller Group we have connections with super smart mortgage professionals and right now they’re offering programs for our clients that lower interest rates and payments! For example, a 3-2-1 buydown option may be what you’re looking for. The 3-2-1 buydown is a financing method that allows you to temporarily lower your mortgage’s interest rate for the first three years of the loan. We see this one more frequently when interest rates are high, so it’s a great option for the current market.
- A few months ago, you had to sell your house before buying in order to win in the multiple offer bidding wars. Now, we are helping our clients buy with contingencies. A contingency is a provision in a real estate contract that makes the contract null and void if a certain event were to occur. Think of it as an escape clause that can be used under defined circumstances. There is a lot more flexibility in this market.
- You can actually go back and see a home for a second look, instead of the single 15 minute showing windows we experienced in the Spring. This is great for buyers because it can be so hard to judge a home and make sure it’s truly the one for you after only one quick walk-through. Now, you have the option to explore multiple homes and really take into consideration what type of property is right for you. Finding your dream home is possible!
- You don’t have to waive or limit inspections or waive the appraisal. This is something we were seeing a lot back in the spring, which was putting some buyers in an uncomfortable and sometimes sticky situation. Now, buyers can take back control and make sure the home they are interested in is in good condition and worth what they are paying for. Buyers also can choose who they want to hire for both of these jobs, again giving them more control in the homebuying process. We have some great recommendations for both inspectors and appraisers if you work with us.
- You can negotiate for a much better price and ask for a seller concession to cover your closing costs. Buyers are finally back in the driver’s seat after a long period of sellers controlling the market. This means more negotiating power and more opportunity!
We don’t expect this will last long, as we mentioned earlier in this article about interest rates dropping and prices going back up – so reach out to discuss your options and to get started today.