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Is Buying A Home Right Now Possible? Absolutely!

Harcourts North America
September 03, 2021

“This is a seller’s market!” “Every house is getting one thousand offers - you don’t stand a chance!” “You should wait for the market to crash!”

For those who are toying with the idea of purchasing a home, these quotes probably sound eerily familiar. Every person who knows anything about real estate has a strong opinion about today’s market and how to proceed when buying or selling a home. But these opinions are causing unnecessary hesitation in today’s buyers.

Sure, this current market is unlike anything we have ever seen in real estate. There is a global pandemic allowing people to work from home, causing them to uproot and relocate, throwing the entire industry into a whirlwind. Interest rates are at historically low levels, and there is also a shortage of available homes for sale, causing a spike in pricing. These are all good thoughts, but by no means does that mean that buying a home today is impossible—quite the opposite. You have to be prepared, educated, and understand these warnings everyone is haphazardly throwing around because buying a home today is possible.

Understanding the Warnings

“It’s a Seller’s Market”

With interest rates at all-time lows, an individual’s appetite to purchase a home has dramatically increased. With the number of interested buyers vastly outnumbering the homes available for purchase, houses are selling faster, and buyers have to contend with one another to produce the best offer. So to compete in this market, you must be flexible when making your proposal stand out from all the rest. The good news is, if this sounds overwhelming, remember that you are not alone. Having the right real estate agent will help you understand the current market, make your offer as intriguing as possible, and assist you in making the right decision.

“Every House is Getting a Thousand Offers”

A thousand is a bit of an exaggeration, but yes, many homes are falling into a multiple offer situation, which is only a problem if you are trying to get a house below value. If your dream home is on the market, and you want it, there is no reason you and your agent cannot put together a winning offer. Though you may have to pay a bit more than the others, the low-interest rates will more than compensate for that.

“Wait For the Market to Crash”

A lot of people remember what happened to the housing market in 2008. They assume that because it happened before that it is about to happen again. They see the mortgage forbearance law popping up due to COVID and believe it is only a matter of time until houses drop to historically low prices. But if you are holding out for the market to crash, you may be wasting your entire life. All indications are that even if the market dips, it will be nowhere near anything like 2008. A vast majority of homeowners that have relied on the COVID forbearance law have already caught themselves up on past payments. So although it is fun to fantasize about the market overflowing with available homes, the reality is, it’s not happening.

Come Prepared

Current Low Mortgage Rates Will Increase

As discussed, current mortgage rates have been, and are at, historically low levels, being one of the main drivers behind the buying craze that has consumed the industry. But all good things must come to an end. The odds are, these rates will begin to rise as the year comes to a close. For you, as the buyer, this means a couple of things:

  1. A higher interest rate equals a higher mortgage payment. So buying now before the rates increase is to your benefit.
  2. If you do wait, the rise in rates will reduce the number of contending buyers. However, keep in mind that those buyers who stick around will be qualified and hungry to secure the property.

Be sure to shop around for a mortgage that suits your needs since the rate offered to you will rely upon your financial situation and the lender. Keep a close eye on the average mortgage interest rate by state, credit score, and loan type to get a feel for the best time for you to purchase a property.

Get Your Finances in Order

To help ensure you are giving yourself the best shot at securing a property, you will want to get your finances in order. To do so, you will want to analyze your credit report to ensure you have the best credit score up to date. Getting a mortgage pre-approval by providing details about employment, income, debt, and financial accounts to show you are a serious buyer. You can then begin approaching various lenders for rate and fee comparisons to find the best possible deal. Knowing the amount you are qualified to borrow and assessing your household budget will help you better understand the type of home you can afford.

Purchase at Auction

The general understanding in the United States is that home auctions are only for distressed properties. But Harcourts North America has changed that. Unlike every other real estate company, Harcourts offers a one-of-a-kind auction platform on non-distressed homes. This process provides a fair opportunity, total transparency, and an exciting competitive environment to find the home of your dreams. If you find yourself looking for a new, innovative way of purchasing a property where the process is not dragged on for weeks and weeks, where you can see, in real-time, every offer being put forward on the house, then our auctions may be perfect for you.

So if you find yourself yearning to buy a new home, don’t listen to the naysayers that try to talk you out of dipping your toes into the market. Though you may encounter competition, there is no reason, with the help of your agent, that you won’t walk away with your dream home at an incredibly low-interest rate. If you understand the warnings and come prepared, you will be well on your way to filling out a “Change of Address” form very soon.