Buying your first home can be a challenging process. Finding a home that is within your budget and that suits your needs can be difficult at times. Going through this process in a seller's market can be even more of a challenge. A seller's market is where inventory is low and there is a lot of competition from other buyers. Homes in these types of markets often sell for over the asking price. If you are looking for single family homes for sale in a seller's market, here are three things to do.
Get Your Financing In Order
If you are looking to buy in a fast-moving real estate market, you need to have your financing in order before you even start looking seriously at listings. Getting pre-approved for financing is the best way to know exactly how much you are able to borrow. You will also want to consider what type of home loan will work best for your needs.Your credit score will play a large role in the type of loan you qualify for. For an FHA loan you will need a credit score of at least 580 and most conventional lenders require credit scores above 620 in order to qualify for a loan.
Get A Real Estate Agent
If you are looking for a home in a seller's market, you will need the help of a professional. An experienced real estate agent is invaluable in these types of markets. When buying in a hot real estate market, you need to be able to move fast. Most listings won't stay on the market long, so you will need to be ready to make an offer as soon as possible when a property you are interested in is listed. A real estate agent will also show you a variety of properties ranging from single family homes to other types of properties that may work for your needs.
Don't Skip The Home Inspection
When buying in a seller's market, you have to move fast. However, it's important to take a close look at the home you are buying before closing on the home. You will still want to get a home inspection before the sell is final. The average cost of a home inspection is $325. If the home has major issues, you may want to walk away from the purchase. Even in a seller's market, there will be other opportunities to buy a home. Choosing one that needs a lot of repair may end up being extremely costly in the long run.
If you are buying your first home in a seller's market, there are a few things that you should do. Getting your financing in order is key toward buying your first home. A real estate agent can also be helpful in this type of real estate market. While it may be tempting to buy a home immediately, it's also important that you don't skip the home inspection.