The real estate market is always changing with different homes for sale and home values rising in value. When you are shopping for a home in a seller's market, your real estate agent is going to be a great asset to help you through the process. When you find the home you want to buy, you may need to deal with the sale of your existing home or a market that is on the rise with not many lower-priced homes for sale. Here are some tips in these areas to help you with your upcoming home purchase.
Secure Your Current Home's Sale
If you are a first-time homebuyer, you won't need to worry about selling a current home. As a renter, you can give your landlord a 30-day notice to move out. However, if you currently own your own home, you will need to sell it first before you can close on a new purchase, which is a common situation. Unless you can qualify for two mortgages at the same time or you plan to rent out your existing home, get your current home listed for sale. Then, you can start shopping for a home to buy.
Be sure that when you do find the home you want to buy you make a purchase offer with the right contingency in the contract to protect your position as the buyer. You should include a clause that the purchase of the new home is dependent on your selling your existing home. This contingency is quite common as many buyers already own an existing property and will need to sell before they can turn around and buy a new home. But if the existing home market is active and homes are selling quickly, you should have no problem selling your home in time to close on your new home.
Consider a Fixer-Upper
When the real estate market is tight and homes are selling quickly, you may be limited in the number of homes to choose from. And not all of these homes may be in the best condition or move-in ready. For this reason, you should consider the potential for buying a fixer-upper home and how much work you are comfortable with acquiring. Some homes are considered a fixer-upper because they need new flooring, paint, and some appliances. However, other fixer-upper homes may need to be gutted down to the wall joists and need new plumbing and electrical updates from knob and tube wiring.
When you evaluate a home for purchase, get some estimates of the work needed to help you determine how much the repairs will cost you. You may be able to do much of the work yourself or have it rehabbed prior to moving in.
For more information, contact a real estate company such as Sold with TJ.