Waiting to Purchase a Home May Not Be Wise
Waiting for the housing market to be less competitive is no guarantee that you will have greater success with your home purchase.
According to the North Texas Real Estate Information System (NTREIS), median home prices increased 12.8% from January 2017 to November 2020. These price increases along with the possibility of rising interest rates, could find homebuyers with less buying power, or priced out of the market altogether if they wait.
The North Texas housing market is extremely competitive. New listings were down 6.2% or 9,342 houses through November of 2020 and closed home sales were up 8.3% or 8,851 homes from 2019. This shortage of new and existing houses along with higher demand, record low-interest rates, and an influx of buyers relocating to the area, are all factors influencing our competitive housing market.
There are reliable strategies to help buyers achieve their homeownership goals without overpaying.
- Work with an experienced Realtor® and strongly consider their recommendations.
- Get pre-approved for a mortgage so that you know your financial limitations.
- Clearly define your home search criteria and expand your search area if necessary.
- Consider new construction as a strategy to combat multiple offers on existing homes.
A Realtor® that is familiar with the local housing market will help you make prudent decisions on home pricing. They can also recommend reputable professionals to validate the property’s condition so that your home purchase will be a sound investment.
Obtaining a mortgage pre-approval allows you to place a purchase offer on a home immediately. In this competitive market, sellers will not consider an offer without a mortgage lender’s approval. This will also give you the ability to move quickly on making an offer. This can be a big advantage over other buyers having to wait on financing approval. Having this pre-approval will also give you confidence that you can close the purchase without financing concerns.
Knowing what you want in a home allows your Realtor® to effectively filter out houses that you have no interest in purchasing. It also helps to reduce the search time and avoid the frustration of unsuccessful home searches.
Multiple offers from buyers bidding on the same house almost always increase the sales price. It’s not uncommon to see these offers go beyond a house’s appraised value. If this occurs and a buyer wants to proceed, they will have to pay the difference between the actual value and the sales price entirely from their funds.
New construction houses are a good way to avoid multiple offer situations. The buyer identifies the home plan, and the salesperson prepares the purchase offer, then you go under contract once the builder signs it.
Although the North Texas housing market is extremely competitive, you should not be discouraged. Your home is out there. With the help of an experienced Realtor® along with a strategic approach, you will find the home you desire.