Spring 2018: Tips for Buying a Home this Season
With the spring season comes warmer weather, more colorful landscapes and of course, the hottest homebuying time of the year. However, the spring 2018 season is showing to be a challenging time for buyers. With interest rates and prices on the rise, buyers need to be prepared for bidding wars, quick-decision making and more strategies when buying in spring 2018.
Here’s the scoop on all you need to know about buying this spring.
First-time homebuyers will have the most trouble this season.
Experts say that starter home prices have increased by nearly 10 percent than last spring. Buyers looking for their first homes should accept this reality and be on the lookout for either smaller, older or fixer-upper homes.
Overall, homes are becoming more affordable.
Even though home prices are on the rise, this fact doesn’t necessarily have an impact on the affordability of a home. The reason for this is because of lower mortgage rates. Experts say that mortgage interest rates have dramatically decreased over the last decade from 16 percent to about 4.5 percent making homes much more affordable for buyers.
Location is still everything.
Nothing has changed about the old, ‘Location, location, location’ mantra when it comes to homebuying in spring 2018. The reality is that the number of homeowners varies from one neighborhood to another. Experts suggest comparing the median incomes with the number of homeowners when accessing each neighborhood. If a neighborhood is showing that its homeowners’ incomes have risen, this is a sign that a neighborhood is up-and-coming.
Be prepared as much as possible.
Being ahead in the homebuying game comes down to a few crucial steps. One of the most important keys to becoming a homeowner in spring 2018 is to be financially strong and able to act fast in this competitive market. Once you find a reliable real estate agent who can help you narrow down your search, make sure you are financially prepared to front a hefty earnest money deposit. Because bidding wars are a possibility among less inventory and higher home prices, make sure you present sellers with a strong offer that might include a letter or even a shorter closing.