What you need to know about buying a home in the summer of 2018
The sunniest time of year, when the sun is shining brightly, is certainly a great time to explore new neighborhoods and envision upcoming backyard parties while visiting. If you plan to buy a home this summer, it’s important to understand the housing market before beginning any serious purchase. You need to know what the real estate market is like for buyers right now and what you can do to end up with the best priced home that fits your budget.
Owning a home is an investment in your future, and with that in mind, you need to make sure you make informed decisions so you can get the best deal possible. The housing market in 2018 should be as strong this summer as it has been all spring. Listing prices and existing home sales are up this year, but there are also advantages to home hunting right now. Here are some of the facts and tips to help you make the most of this year’s summer housing market.
SUMMER MARKET DATA
DURING THE SUMMER PRICE DROP: Although summer is peak home buying season, it’s not crazy as prices drop from May to October. Anyway, if you stick around until the end of August, then you might find a really good deal, which is when almost 14% of listings get a discount.
Private mortgage insurance is becoming more reliable: PMI or Private Mortgage Insurance getting cheaper after PMI lenders MGIC and Radian cut their rates this spring; is excellent financial news for homebuyers. That will make most of these PMI companies competitive with each other, which will bring them all down as a result. Less than 20% down payment earns homebuyers PMI. It means it will be cheaper for some buyers to get into houses earlier.
HOME BUYING TIPS FOR SUMMER 2018
I DO NOT DISCOUNT PREVIOUS LISTINGS: At times when homes are blown off the market in a matter of days due to stiff competition, it’s easy to think that a listing that’s a week or so old is a red flag. But keep in mind that this is not always the case. Often it is because the buyer backed out and backed out of a deal for a house in mint condition. But thanks to the assumptions homebuyers make about older listings in crowded markets, the delay can drive the price down.
There are more of these on the market. The number of homes on the market is shrinking, but there are still 8.3% more homes in need of repair than six years ago. If you’re determined not to have to fix the top so you’re ready to move quickly, then there will only be a couple of options at a time. And when new listings show up, it’s going to be pretty fierce.
KNOW THE NEIGHBORHOOD: The plus point of the competitive market is that it’s tempting to make an offer on any available property that meets your criteria, but if you’re in the wrong neighborhood, you may never want to buy the house. It is best to take some time and explore the community before making an offer. You can even find out what your future neighbors have to say about the area by contacting them.
MAKE THE STRONGEST OFFER: To stay in the market, make the strongest offer, even if your offer is not the highest because now is not the time for low offers. Sure, making an all-cash offer can be difficult for many homebuyers, but there are a few ways to make a solid offer that doesn’t require a lot of money. Substantial eventualities, such as a shorter closing or inspection period and writing a great offer letter, can help your offer stand out.