Appreciation rates in Utah touched a record 5% high in August. A house could be a better investment than money in your savings’ account. This is the perfect time to hit the market with a house that works even though it may be out of your budget. With multiple offers and low inventory, and you can get away with a steal over your asking price. You really need to make an effort before closing a deal.
Sold prices of all homes have risen to 5.6% since January through July in Utah. Sellers are getting 98% of their offer price and the asking price is up by 6%. The median price in July for a home hit $325,250 which is an increase from January amount of $308,000. The median time on the market was 23 days in July.
If you're looking for a home under $400,000 in Utah, there are several realtors that are sure to help you find something that catches your eye and within means. So, before taking the first step of getting mortgages pre-approved, you should spend a little more than you would usually do!
A few thousand dollars more would make a huge difference in buying your dream home. The difference in your monthly payments can be small. Every $1000 costs less than five bucks a month with a 4% interest amortized over 30 years.
Look for different ways to cut expenses so it adds up to your mortgage. You could refinance car payments or simple interest loans to give you that extra push. A discounted card from a local gas station can really help. Some stations offer 15 cents off a gallon of gas.
It’s better not to ask your seller to pay for closing costs, but you should always ask your lender to chip in. Sellers work on a margin and get it back by raising your interest rate by at least an eight-point.
4 Things to Consider Before Buying Your Dream Home
Here are a few tips you could consider before buying that dream home:
Discuss numbers: Talking to a lender establishes two very important things. It shows you how much a home you can afford and gets you a pre-approval letter. Having a pre-approval letter in hand prior to looking at properties helps you move in quickly. In this tight market, timing matters more than anything else. Having all the pieces together before looking at properties gives you an edge over other buyers.
Grasp the market: Watch the market and do your research in areas that interest you the most. Consider whether the numbers of real estate properties are increasing or not. Being an educated buyer will definitely help you recognize a well-priced house and when it hits the market.
Discover what the seller wants: Find out what the seller wants. Perhaps it's not about the money. Maybe it’s all about quicker closing time. The seller may want to rent back until they make their next move. Make sure to discuss with your buyer agent and never be afraid to negotiate.
Send a letter: A personal letter to the seller may just do the trick. A lot of sellers really care who buys their home. Tell the seller why you love the home so much. Including a cute family, may give the seller another reason to sell you the home.
The most important time to buy a home in the market is the first two weeks. Price reductions are expected as sellers listed their properties very high, to begin with. While you're at it don't forget to get your Free home warranty quote?
Also, check out this simple Home Affordability Calculator to know if you have enough money to buy a home.