What are the keys to buying in this competitive market?

By
Real Estate Broker/Owner with Watters International Realty #0567369

 

Friends and Clients --

Buying a home in a seller’s market is always a tricky situation. With low inventory and high demand, homeowners have the upper hand and they know it.

However, there are some specific things to know about the 2021 market that will help you win as a homebuyer, even in a challenging environment like this.

For starters, interest rates remain at all-time lows. The average rate for a 30-year fixed mortgage dropped even further to 2.79% during the week of January 14.

All of the major industry players predict that mortgage rates will stay in the low 3% range throughout 2021. Freddie Mac projects a 3% average across the entire year.

However, because interest rates are so low, home prices will probably continue to rise, albeit at a slower pace. The Mortgage Bankers Association projects a modest 2.4% jump in home prices, while Freddie Mac projects an increase of 2.6%

With so much going on, it’s more important than ever that you’re properly prepared as a homebuyer. This means having all of your financial ducks in a row, getting pre-approved, and being ready to make a quick offer when the right home hits the market.

If you find yourself in a bidding war, here’s some advice: Don’t just focus on the price. The terms of your offer are just as important.

When you do things like waive contingencies or add an escalation clause, it shows the seller you’re extremely serious without having to increase your offer price.

A bonus tip: Consider writing a personalized cover letter to the seller. If price and terms are all equal, it may be the thing you need to stand out from the rest of the competition and get the home of your dreams.

If buying a home is in your plans this spring, it’s time to start the process. You can get a jump on the spring market by taking a look at the homes that are available in Austin right now:

Click here to see all Austin homes for sale

As always, if you're thinking about buying or have any questions, give me a call at 512-829-8000. I’m here to help.

Take care,

Chris Watters

 

 

          

                           Looking to buy a home?                        Looking to sell a home?

 

Comments (2)

Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Mar 06, 2021 03:19 AM
Masasi Kisinoto

I think that you really need a cover letter. But it's very hard to write it yourself, I can understand that, because I haven't been able to. The only thing I recommend is that you consider getting help from professionals. I know that https://resumeedge.com/cover-letter can help with such a letter. By the way they have helped me more than once and have never let me down in terms of deadlines and content. So I am very satisfied with them, I hope it will be as useful to you. Good luck.

Apr 16, 2021 11:50 AM

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