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5 Questions People Ask When Buying a Home in Bozeman

Real Estate Broker/Owner with Bozeman Real Estate Group

May 15, 2019 10:04 AM

1. How competitive is it?

Homes in Bozeman spend a median of just 19 days on the market, a 55% decrease in the last 3 years. The number of homes on the market in Bozeman is also at a historic low, with the supply of homes decreasing 30% over the past 3 years. If homes are priced right, they will sell quickly.

As a home buyer in Bozeman, you could easily find yourself in a multiple-offer scenario. Before you start looking at homes you want to make sure you have a pre-approval letter from a mortgage lender. If you want to make your potential offers even stronger, consider pre-underwriting. Pre-underwriting takes the pre-approval a step further and says that the mortgage company has already assessed your financials and agreed to give you a mortgage up to a certain price. With pre-underwriting, you won’t need to include a financing contingency with your offer, making it more attractive to sellers. Ask your lender if they will provide this service to you, or call the friendly folks at Cornerstone Home Lending. They offer the “Cornerstone Confidence” which includes full credit, income, and asset approval before you even go under contract.

2. Why are the prices so high?

Depending on where you are coming from, Bozeman’s home prices can either be a sticker shock, or a relief. While Bozeman’s home prices are higher than the national average, they are significantly lower than metropolitan areas like Seattle, Portland or Denver and comparably priced to similar mountain towns in the west. But what is driving Bozeman’s home prices up? High demand for housing, low inventory and a high cost of living to name a few. Because of Bozeman’s remoteness, building materials are more expensive. The long winters and subzero temperatures slow building, making the process of building a home more expensive. The quality of life is making Bozeman an increasingly desirable place to live, with low crime rates, fantastic school systems, close proximity to the mountains and Montana State University. All of these factors drive prices higher.

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This post was written by Bozeman Real Estate Group.

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