Buying in a Seller’s Market
Plenty of analysts have been eager to proclaim the end of Texas’ real estate boom in light of falling oil prices, but so far the sky has refused to fall. According to the Texas A&M Real Estate Center, Texas’ major metros all boasted higher home sales in March 2015 than in the same month of 2013 or 2014.
If the housing market continues at the current healthy clip into the summer months, home buyers will need a strategy for buying a home in a seller’s market. Here are a few tips:
1. Be prepared! Take a tip from the Boy Scouts – don’t waste time shopping until you are organized and ready to make an offer. There’s not much more disappointing than finding your dream home, and watching someone else move in.
2. Take the reins. Don’t let circumstances like a pending divorce or a home you need to stage and sell slow you down. There are ways to work around most logistical issues and get the home you want, even if you are buying a home in a seller’s market. Specialized loans available from smaller lenders can help with a wide range of circumstances, including:
- Pending Sale – if your current home is still on the market and you don’t want to move twice, don’t despair. A residential bridge loan is a short-term loan that “bridges the gap” between the time you buy a new home and your old one sells. Best of all, you don’t have to move twice.
- Pending Divorce – divorce loans may be available that will allow you to move on before the divorce is final.
- Lack of US Credit History – if you are moving to the US, or an expat returning from a long time working overseas, special loans are available to help you.
- Self-employment – There are affordable loan options for the self employed. Contact us for more information.
3. Pre-Qualify. Put sellers’ minds at ease without a lot of work. After a free pre-qualification process, we can provide you with a quote and a personalized pre-qualification letter that you can submit with your purchase offer. This gives the seller assurance that you are not bidding on more than you can afford.
4. Consider a cash offer. Typically, a seller with multiple offers will accept a cash offer over a financed offer. This is sometimes true even if the cash offer is 2 or 3% lower than the competing bids. If you have cash at hand but don’t want to tie it up long-term in your house, Hurst Lending can work with you to convert your cash offer into a regular residential mortgage after the sale is completed.
For help preparing to make your best offer this summer, call Jay Hurst at 877-292-7350 or send us a note .