Position Yourself in the Real Estate Market Before It’s Too Late

Housing prices are booming. Demand has exploded in the last year and has shown no signs of settling down anytime soon. Interest rates are currently at an all-time low, which makes it easier for buyers looking to secure a mortgage and current homeowners with refinancing despite these high prices. At the same time, inflation has skyrocketed for the last several months, which has driven prices of all other goods higher than ever and reduced the buying power of average Americans. 

To try and combat this issue, the United States Federal Reserve has voted unanimously to raise interest rates starting this month. That means it will not be as easy for buyers to secure mortgages they can afford. Also, current homeowners will likely be stuck with their current interest rates. When you combine all that with the fact that those efforts to fight inflation won’t necessarily reduce prices, you have the recipe for one of the best investments you could make today buying a home. Experts have quantified how much missing out on this golden opportunity could cost you.

Experts estimate that with projected mortgage rates rising from 3% to an average of 3.55% by next year, the average 30-year mortgage will cost $107 more per month for the borrower in interest alone if they wait until 2023 to secure a property. The rise in interest rates isn’t going to stop there. Experts also project that the federal reserve could raise interest rates to as high as 4.6% before this war on inflation is remotely close to being over. That would make that extra $107 per month look paltry compared to what it could look like if you were to wait to buy property until then.

Before 2023 arrives and before additional interest rate hikes, there are still ample options for buying a home despite being amidst a seller’s market. Because we are navigating a seller’s market, demand for homes will likely not decline soon. That means that the prices are also not going to either. Luckily, that makes housing one of the most stable investment vehicles to which you can allocate your assets for the foreseeable future, especially when you consider how volatile the prices of other assets have been after recent market declines. Here are some steps you can take to make sure you get the most out of your investment:
 

Obtain Pre-Approval From a Lender Before You Start Looking at Properties

Given that home prices are soaring to all-time highs, most buyers are not likely to pay cash. After interest rates have already jumped and further rate hikes are imminent, it will become increasingly difficult to secure an affordable mortgage. If you obtain pre-approval from a lender before looking at properties, you can lock in current rates before the hikes and be as ready as a cash buyer. There’s a significant difference between being pre-qualified for a mortgage and getting pre-approved. Getting pre-approved by your lender is a surefire way to position yourself ahead of most buyers and secure your investment before this buying window closes.
    

Have the Property You’re Looking at Inspected Thoroughly Before You Buy

When making large purchases such as a home, be sure you’ve done your homework. The last thing you want to do is to get pre-approved for a mortgage during this buying window only to find out the house you purchased has turned out to be a money pit without your knowledge. Having the property inspected before you buy ensures that you know what you’re getting into and that you’re using this opportunity with lower interest rates on a sturdy house.

Avoid Blindly Trusting the Seller’s Asking Price

These days, home prices are becoming absurd. Because demand for housing is so high and the supply is so tight, sellers can get away with asking prices that would have previously been laughable. Even though market prices are higher than ever, you don’t want to assume that a seller’s asking price is inherently the market price. By consulting with a real estate professional, you can easily navigate the current housing market and ensure you find a good deal.

Investigate the Surrounding Area and be Sure it Accomodates Your Lifestyle

Do you have a family? If so, you’ll want to know what the schools are like in the community near the home you’re looking at buying so you can ensure your child receives proper education and thrives in their environment. Who are your neighbors? Are they people you would likely get along with, or would you have problems with them? How close is the property to your employer or the grocery store? If you’re going to commute, is there ample public transport, or are the roads smooth so you can avoid damaging your vehicle? These questions will massively impact your experience in your home, so you’ll want to investigate the surrounding area thoroughly and be sure that it accommodates your lifestyle and suits your needs.

Don’t Let the First Impression Cloud Your Judgement

Appearances can be deceiving, especially in a world where we now have access to online platforms to search for properties. Most listers overlook the importance of hiring a photographer and posting quality photos of the property they’re listing. That can make the property look far worse and turn off most buyers. On the other hand, a property may look great at first glance only to be plagued with structural problems and located in an area undesirable for your needs. Don’t let your first impression cloud your judgment. You could be walking away from what could otherwise be a great property or walking into a money pit without knowing it. That goes back to taking advantage of inspections and doing your homework before pulling the trigger on a property.

Know Your Rights and Understand Your Obligations Before You Sign on the Dotted Line

Not understanding your obligations to the seller or your mortgage broker could land you in some deep trouble. The last thing you want is to end up in a legal battle over a contract that you don’t understand for which you haven’t fulfilled your obligations. In the event of a breach of contract on your part or another party involved in the sale, you also want to understand your rights as a buyer/homeowner. To ensure that you understand the contract thoroughly and that everyone holds up their end, you can consult with an attorney who will walk you through this process.

Trust an Expert Rather Than Attempting Everything on Your Own

When buying a home, there are many variables, especially in the current market. With inflation at an all-time high and record-low interest rates disappearing, these next few months could be one of the last opportunities to obtain one of the most secure investment vehicles on the market affordably for the foreseeable future. According to experts, positioning yourself ahead of further rate hikes in 2023 could save the average homebuyer $107 in interest on their mortgage monthly.

With this in mind, you want to consider many variables to ensure not only are you getting a great deal but also how you can avoid most headaches that come with purchasing a new home. While weighing your best options, you should not do so by yourself. Turn to a real estate professional you can trust.

If you’re looking at securing one of the best investment vehicles available today for yourself and are unsure where to turn, I can help. I specialize in finding properties perfect for the needs of Arizona home buyers, getting them pre-approved for affordable mortgages, and walking them through the buying process so they can avoid all the headaches that come with such a purchase. Contact me today if you’re ready to find the right home for you and take advantage of the last great buying opportunity for the foreseeable future.

Contact me today for more information 

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