The past few years have prompted many people to hold off on their decision to purchase a new home. It began during the global pandemic when unemployment rates rose to an all-time high. The financial pressures, particularly in states like California, where the cost of living was already above the national average, led to the inability to afford bare necessities, let alone a new home purchase. Although things briefly subsided, inflation and the decline of the country’s economy created an unfavorable market for hopeful homeowners.
The Saga Continues
Today, the average home price is close to half a million dollars, and mortgage rates have almost doubled, driving the costs of homeownership through the roof. As discussions of a recession become more prevalent, many wonder if purchasing a house is an economically-wise decision. Waiting may be the best option for some; however, those that wish to proceed can implement effective strategies to navigate the home buying process. Continue reading to learn more.
Let A Real Estate Agent Be Your Guide
Although home buying resources like real estate databases, classified ads, and virtual tours make property searching more convenient, they don’t compare to the services you’d receive from a real estate agent. Agents have the education, experience, and training to help clients navigate the home buying process, despite the unfavorable conditions of the market.
A real estate agent can access databases that the average consumer can’t. They also have a network of professionals, including other agents, sellers, property investors, and home builders, that notifies agents when houses are available for sale. These resources ultimately provide buyers with more options to consider.
More than access to various available properties, real estate agents are experts on the neighborhoods they service. For example, if you’re interested in Mission Viejo homes for sale, a real estate agent can advise you on the best areas to meet your needs. Whether you’re looking for a family or pet-friendly community or want to reside in a neighborhood with the best schools, they have the local knowledge to help you select the right property.
Re-Evaluate Your Budget
As the costs of homeownership have increased, it’s essential to evaluate your budget. What may have been an affordable price range two years ago could have changed. Review the real estate market changes, rise in the cost of living, and your existing financial obligations to determine if you need to make adjustments. You may need to save a bit longer, increase your income, reduce debt, or lower your purchase limits.
Consider Fixer-Uppers
Keep your options open when touring properties for sale. Although it would be nice to move into a newly renovated house with various amenities and features, they may be out of your price range. However, considering a home that needs minor maintenance and repairs, and qualifies for a fixer upper home loan, could save you money. Improvements like installing new flooring, tearing down unnecessary walls, and painting is easy to do yourself. Once the economy and your budget improve, you can invest in renovations that improve your property’s comfort, functionality, aesthetics, and value.
Negotiate Wisely
Bidding on a property is all about negotiating. Just because a seller is asking a specific price doesn’t mean they aren’t willing to be flexible. When submitting an offer, consider going at least $10,000 under the listing price. If it’s too low, the worst that could happen is the buyer makes a counter offer, which still saves you money. You can also use home inspections to your advantage. If the property needs maintenance and repairs, you can offer a lower amount and agree to accept the residence “as-is.”
There is no denying that the real estate market isn’t ideal for some buyers. Although home prices have dropped and property availability increased since the pandemic, rising interest rates and inflation ultimately increased the overall cost of homeownership. If you’re tired of holding off on your dreams of buying a house, the suggestions above can help you find the right property.
