Preparing to purchase a home is both exciting and nerve wracking at the same time. On one hand, you will finally have the chance to own your own home. On the other hand, you must compete with other home buyers to obtain the home of your dreams. Fortunately, there are plenty of tips to help make home ownership a possibility for you.
- Be Prepared to Act
According to Realtor.com, a median home sits on the market for roughly 65 days. While that may seem like plenty of time, take into consideration that it is just over two months. That is why you need to prepare yourself to act, and act fast.
During the cooler months, you are likely to have more of a grace period. Homes may sit on the market for 85 to 90 days when the temperature drops. However, competitive home buying tends to increase during the spring and summer months.
You can act fast by knowing exactly the type of home you want to buy. You can also gain an advantage by knowing how much you’re comfortable offering. By acting quickly and confidently, realtors are more likely to take you seriously.
- Be Willing to Prove Your Capability
One way to ensure you are competitive enough is to prove that you are a capable of home ownership. Make sure you arrange for mortgage pre-approval before diving into the housing market. Documentation of mortgage pre-approval shows a realtor that you are a capable buyer.
Keep in mind that not all mortgages and loans are created equal. For instance, if you receive pre-approval for an FHA loan, the seller may shy away. An FHA loan is typically for those with less than exemplary credit. Because of that, the seller may call into question your capability to close on the home.
Make sure you can also prove that you have a stellar history of making payments on time. If you currently rent, ask your rental company or landlord for payment statements. Proving you can pay on time and secure a loan will give you a competitive edge for home ownership.
- Prepare Yourself for the Trade-off
Understanding the financial trade-off of home ownership is an important step. If you are currently renting, you will find that there are benefits to buying a home and vice versa. Renting provides flexibility and the absence of maintenance and insurance cost
Owning a home means you are responsible for maintenance, repairs, and insurance. Of course, owning a home provides you with a sense of security and stability, too. When you own your home, you have the chance to establish roots and a sense of pride.
If you have decent credit, you might be able to get a mortgage that is less than your monthly rent. Business Insider reports the average monthly rent in Nevada is $1,275. Homeowners have an average mortgage payment of $1,196 a month. While small, you can still save money by buying rather than renting.
- Simply the Experience for Yourself
Do not overlook the benefits of home ownership programs. Thanks to home ownership programs, you can get the down payment faster and take care of closing costs. Essentially, programs can help you move on a home faster than the average home buyer
Some people fail to understand all the benefits of home ownership programs. Many programs include tax credits, grants, and loans to assist you beyond the sale price of the home. When you buy a home, you might not consider the cost of furnishings.
You can use any leftover money you might have from programs to cover the cost of furnishings. Down Payment Resource says there are more than 2,400 home ownership programs available. Organizations likely to offer these programs include housing authorities, employers, and non-profit companies.
- Simplify the Seller’s Life
One way to gain a head’s up over the competition is to make the seller’s life easy. In many situations, a person uses the proceeds from the sale of their home to buy a new home. For that reason, many sellers might need a couple of months before they can move out of the home.
Accommodate the seller by offering to rent the home back to them after completing the sale. Provide them with anywhere between thirty to ninety days. Another good idea is to offer to cover the seller’s closing costs.
By making life easier for the seller, you do not have to be the highest bidder. In fact, you can compete with higher bidders by offering such accommodating terms. Sellers also desire an easy, painless process when selling their home.
6. Appeal to the Human Factor
Just like you, the sellers are human, too. Sometimes it is better to appeal to a seller’s human nature to win a bidding war. Write a good old-fashioned letter to the seller explaining why you want to buy their home.
If you want to buy the home because it is spacious and in the right location for your family, explain that. Sellers are more likely to sell their home to someone that can relate to. Just because they are selling their home doesn’t mean it no longer holds sentimental value to them.
If you appreciate the home as much as the seller, it can tug on the seller’s heartstrings. Explain in your letter why home ownership means so much to you. Particularly explain why home ownership means so much to you in relation to the seller’s house.
- Work with a Reputable Real Estate Agent
Last, but certainly not least, home ownership is possible by working with a Reno real estate agent. Working with a reputable real estate agent offers several advantages. A great agent can help you save money on the sale price of the home.
Agents are also able to match you with the perfect home based on your wants, needs, and finances. Perhaps you want to own a home with a pool and fenced in backyard that is perfect for the family. An agent can make your wants and desires a reality.
Agents also understand the importance of moving fast in a competitive based market. They can make offers and close on deals fast, ensuring you get the home you want. Diving into the waters of home buying alone may prove more stressful than necessary.
Overall, home ownership is something you can make a reality. Applying the tips above and working with Mike Wood, one of the best real estate agents in Reno, can assure that. Reach out and contact Mike Wood, real estate agent near you before you begin your hunt for a home.