How to Get the Best Home at the Right Price? Tips and Tricks for Buyers in 2024
Have you ever tried finding a needle in a haystack? In the first semester of 2024, looking for a new home will undeniably leave you with the same frustration. But fear not! Unlocking the secret to catching the best home at the right price is easier than you might first believe. With a few slick tips and tricks up your sleeve, you'll be well on your way. How can you ensure you're walking through the front door of your dream home without breaking the bank? Let's find out!
What caused the downfall of the US housing market?
In 2024, the US economy still struggles to survive recession and inflation. How does this affect the real estate market? The national unemployment rate, exorbitant product and service prices, and high-interest rates have reduced consumers' spending power, bringing the housing market to a standstill.
What intimidates buyers?
Out-of-reach property prices and hefty mortgage rates (the thirty-year fixed rate stood at 6.86 percent as of March 28, 2024) dissuaded potential buyers from purchasing a new home. Will mortgage rates ever go down? As part of their real estate market predictions for 2024, connoisseurs forecast a 0.2 percent drop in the second quarter of 2024.
Where should home buyers look first?
Many regions feature a buyer's market with more homes for sale than prospective buyers. Here, you'll have greater chances to negotiate a fair price and unexpected deals. Cleveland and Toledo, Ohio; Philadelphia, Pennsylvania; Omaha, Nebraska; Rockford, Illinois; and Albuquerque, New Mexico, are only some of the most trending buyer's markets in the States.
You may also be interested in whether your dream relocation destination is a buyer's or seller's market. Why don't you contact a professional agent in one of the US's most complex real estate agent directory?
What frustrates sellers?
On the other hand, the ongoing market contraction has affected (and left perplexed) sellers similarly. Many of them would be willing to sell their homes and relocate. However, they're afraid to lose a significant portion of their investments. Plus, they know they won't receive the same worthwhile mortgage rates as they did during and immediately after the pandemic. Thus, they keep their home prices high. The days of seller's markets (where the demand outnumbers the housing supply) are over for now.
Have you reached the point of no return yet? Good! Then, start here!
Are you fed up with transferring a substantial part of your monthly income for rent? Don't worry—you're not the only one. According to market statistics, the median rent in the US has continuously been increasing, reaching a massive $2,040 in March 2024. Thus, fewer and fewer Americans can afford it. Then, why won't you change your rent into a mortgage? Join us as we discover what it takes to switch from renting to homeownership!
Inform yourself about mortgage criteria and buyer programs!
Let's get the obvious out in the open right off the bat. You'll need a stellar credit score (at least 620) to qualify for a decent mortgage. Newbie house hunters can benefit from excellent first-time home buyer programs! These provide indispensable financial assistance so you won't feel completely "drained." Also, keep tabs on interest rates! A slight change can mean a significant difference in your monthly payments. Consider locking in a rate when it seems favorable!
Check alternative routes to locate an affordable house for sale!
Getting an early start is more than half the battle. If you're the early bird, you'll catch the worm, or in this case, the best deal. Home prices fluctuate, and keeping a keen eye on market trends can give you a sneak peek into when prices might dip. First, monitor home listings on popular real estate websites!
Secondly, join social media groups trending this topic! You'd be surprised how many owners won't take the traditional route of home listings and instead post on trendy Facebook, Instagram, TikTok, etc.
Are you up for some fieldwork?
You can also take a more unorthodox investigative approach and "scout a location" yourself! Driving through the neighborhood of your choice can be productive! For instance, some sellers post the sign For Sale By Owner.
Or, you can bump into a property that is abandoned or in lousy condition. Still, you fell for it, hoping to get a deal. In that case, you can submit your offer to the homeowner directly! (You can rack the title online on the county recorder's website.) In one of the best-case scenarios (such as owner-financing), they will be willing to make a deal. In addition, you will also eliminate the bank as a go-between and pay the owner straight.
How can you cut home-buying costs?
You can choose to eliminate home inspection by accepting the terms of buying a house as is. Yet, a property inspection reveals all major structural and design flaws from A to Z. Therefore, we wouldn't recommend this option because you'll expose yourself to countless financial expenses in the future.
Prepare yourself to be well-versed in the art of negotiations!
If you want to buy the best home at the right price, you must be open to (countless hours of) negotiations! You'll need information about the house and the neighborhood to obtain that sweet deal. The property condition can be quintessential here, as you can use defects as leverage. During price negotiations, avoid showing too much affection for the house because that proves to the seller the asset's value to you. You'd risk giving up on your initial advantage.
Nevertheless, it's not just about price. Terms of sale, repairs, and closing dates can all be part of the deal. Flexibility and understanding the seller's values can make your offer stand out. It's not always a highball game. Sometimes, the right conditions beat a higher offer.
By all means, a savvy agent will expertly represent your best interests if you don't consider yourself a fierce negotiator.
Should you go all in or wait for the next bus?
Do you remember what we said about the current fragile state of the US real estate market? Homeowners don't rush to sell, so property prices are relatively high. Unfortunately, new construction is also pricey (the median sale price was approximately $400,000 in February 2024). However, you can stumble into affordable gems. Again, information and location are gold!
Suppose you find a home that suits your requirements, even if the price initially seems out of reach. We suggest negotiating and submitting an offer casually based on your budget. Who knows? The seller might get hooked.
Conclusion
Many controversial (and often misguided) ideas circulate about approaching the home-buying process. One of them focuses on undertaking this tricky journey without a professional by your side. A realtor or real estate agent compiles all the data you'll ever need to buy a home, such as the financial aspects, location scouting, inspecting the premise, and the closing-day fuss. Without them, real estate transactions can go sideways for the buyer.
Thus, we advise against relying solely on your personal resources. Plus, the seller pays the buyer's agent's commission (usually 5-6 percent of the property sale) in the US.
Whether you decide to leap now or later, make sure it's a jump you're ready to take with your eyes open. After all, buying a home is not just a financial transaction. It's the backdrop to your life's future adventures.