According to Mark Huffman, a consumer news reporter for Consumer Affairs since 2004, “This spring’s housing market is one of the toughest in memory, with rising prices coinciding with a declining number of homes for sale. So what can you do to be the best competitor?
“For millennials, who tend to be purchasing their first home, it’s especially challenging. According to realtor.com, millennial home shoppers will fare better in some housing markets than others.
“The real estate marketplace has identified five housing markets that present a particular challenge, including one you might not expect. While San Jose, Calif., one of the most expensive markets in America, leads the list of most challenging markets for millennials, Omaha, Neb., is number five.
“The hardest markets for millennials to purchase homes are:
Salt Lake City
The Midwest housing markets appeared as more affordable places to live, but Minneapolis and Omaha appear to be exceptions when it comes to housing. Minneapolis is relatively affordable but has the fewest available entry-level homes.
Homes are a bit pricier in Omaha, but the entry-level housing shortage is nearly as severe. The market has become attractive to millennials in recent years for its highly-rated schools and booming job market.
It has to be frustrating for a potential homebuyer to compete in a severe shortage. So what can you do to be the best competitor?
Before house hunting, get pre-qualified – talking to different lenders and seeing not only who offers the best rates and terms, but also manageable fees and costs. Pre-qualification gives you great information about how much house you can afford and allows you to move quickly if you find the right house.
Pre-qualified is not the same as pre-approved – With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you’re one step closer to obtaining an actual mortgage.
Get professional help – Find a realtor you can trust. Yes, you have unprecedented internet access to sellers’ information, but a realtor has years of experience that can help you with everything from the area, the appraising of a dwelling, the paperwork, the comparisons, and negotiation on price. If you need help finding a qualified agent, Styl Properties, Inc. knows many agents we can refer you to for your first home purchase.
Make an Offer – Your real estate agent will help you decide how much money you want to offer for the house along with any conditions you want to ask for, like having the buyer pay for your closing costs. Your agent will then present the offer to the seller’s agent; the seller will either reject, accept your offer, or issue a counter-offer. You can then accept, or continue to go back and forth until you either reach a deal or decide to call it quits.
MoreSo what can you do to be the best competitor?
Escrow – Remember Omaha is a red-hot If you reach an agreement, you’ll make a good-faith deposit, and the process then transitions into escrow. Escrow is a short period of time (often about 30 days) where the seller takes the house off the market with the contractual expectation that you will buy the house – provided you don’t find any serious problems with it when you inspect it.
Beware of sleeper costs – Comparing the monthly mortgage payments to paying rent is only part of the story. The bank may require property taxes and insurance to be part of the monthly mortgage payment. Then there’s the unexpected. When a couple I know first moved into their house, the front, cement porch collapsed costing them $1.500 to repair.
Always hire a home inspector – “You should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.”
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast to resolve any situation.
Give us a ring. We would be more than happy to spend some time with you to help you. We want you to understand the process and to get all of your questions answered.