Springtime is near and you've been teeter-tottering with the idea of buying a new home. Your five seconds of summer is a hop, skip and a jump away, which means that homebuying season is heating up for buyers and sellers. Yes, it's a prime time and one of the best seasons to dive into the pool of real estate. Why? Forty percent of home sales occur during the warm months of April, May and June. So, inventory of homes is expected to skyrocket during the peak season.
All signs may point to sellers having the advantage during the spring-summer cycle. Home prices are on the up-swing; wages are steady; and housing demand is on the rise.
Those looking to purchase a home might find themselves in a bidding war over the homes that they love. And guess what!? Some sellers are getting above asking price. But, before you throw in the proverbial towel, consider the advantages of peak homebuying season. The summer presents a great time for homebuyers. If they start the buying process in the spring and close by summer, parents can move their family into their new home, without disturbing the current school year or the upcoming one. Plus, who wants to move in the winter time when temperatures are frigid? It's much easier to haul your belongings to and fro, when the days are warmer and longer.
Before you venture out in search of your new home, consider the following when buying a new home.
Start house hunting early: Over 80% of people who prefer to make a 2016 home purchase get started early to avoid the competition that arises later in the season.
Shop for the right mortgage. With the increase in housing prices, buyers should maximize their attempts at finding the best mortgage rate. A lower interest rate may help you qualify for a home and shave thousands off of the life of the loan.
Opt for a new construction. New home building is increasing quickly. Considering this option can help homebuyers avoid bidding wars and give them access to more home selections. In addition, operating and maintenance costs may be reduced.
Be decisive. Most people prefer buying a home in the spring, so they can be settled in by summer. So don't flip flop. If you know the house you want, be ready to make an offer.
Obtain a pre-approval letter. Getting a pre-approval letter from a local bank or a local mortgage broker may give you special preference when bidding on a home.
Be prepared to pay list price. Remember it's a seller's market, so focus on the value of the home, and be sure that it's the home you want at a price within your budget.
Consider a "fixer-upper." Even if your newly found home isn’t quite perfect, consider renovation loan programs to help finance improvements to make it ideal.
Buying a home can be stressful so make sure you consider all of your options—including the season—before you step in the homebuying market.