Tag Archive for: Factors To Consider When Buying A Home This Spring

There are many considerations a homebuyer should understand when purchasing a home in the spring. Here are five things you might want to consider before you dive in too deep in search for a home:

  • Save for a downpayment. This is something you should be doing well before you begin looking for a home. Having a sizable down payment can help you when shopping for a loan and lower your overall monthly payment as well. The process of saving can be challenging with bills and other monetary obligations in play, but the rewards can pay for themselves over the life of a loan. As a buyer, understand that there are different mortgage options available and with them come varying degrees of downpayments. Some buyers have a misunderstanding that they must come up with 10% to 20% of the purchase price, but that’s just not the case.
  • Get pre-approved for a mortgage. Doing this early on is crucial to understanding your budget and making competitive offers while home shopping. If a seller has more than one offer on the table, the pre-approved purchaser will usually be in a better position than the one whose offer wasn’t accompanied by a pre-approval. Furthermore, you won’t over-reach as a buyer. One of the most frustrating things we witness is interested parties not being able to afford homes they’re actively pursuing. With a pre-approval, a conservative range of values provide a clear roadmap for both you and your REALTOR® as you seek your dream home or investment property.
  • As homebuyers emerge from colder weather, especially a winter that’s served up some slick and treacherous conditions, they might look to areas that don’t need to endure the brunt of the season. Perhaps they choose a shorter commute to work in order to spend less time on the roads. Likewise, a garage may be an upgrade for someone who’s never had one and who’s had to deal with the challenges of leaving the house on cold or snowy winter mornings. Spring fever brings these thoughts into the minds of buyers as they set out to find their next home. Thus, it’s essential to determine the locations or neighborhoods you’re leaning toward. If you don’t have specific neighborhoods in mind, take into account factors like proximity to amenities, schools or work to help you narrow down your choices.
  • Understand the current market conditions, such as inventory levels and pricing trends. Should you buy now? Are you in a buyer’s or seller’s market? This will help you understand if a seller is willing to negotiate or if you have to be ready to immediately make an offer when you find something you love. Working with a knowledgeable real estate professional can ensure you’re up on these trends. Presently, in Northeastern Pennsylvania, we’re struggling with a deficient supply of homes. Since June 2020, we’ve fallen from a balanced market. Plummeted so much so that our present inventory of residential properties (an absorption rate of 1.95) more closely resembles the lifeless numbers we experienced in this market between February and April of 2022 (with an average absorption rate of 1.44) than anything looking like we’re emerging from this seller’s market.*
  • Some may consider this a shameless plug, but as any market begins to heat up and the temperature changes, it’s critical to have trusted professionals who will guide and support you on your quest toward homeownership. Home inspectors, appraisers, mortgage lenders or advisors, surveyors, real estate agents and the like all play significant roles in helping you attain your real estate goals. Take the time to interview real estate agents, if you don’t have one in mind. Have a series of questions ready that you might have entering this market. How can the agent you’re considering hiring address these concerns? Do they have the experience needed to help you overcome any challenges you might have standing in your way? Learn about their expertise and how long they’ve been in the industry. Also, ask them about current trends in the market. Make sure they’re a good fit for you and a good listener too!

Spring is a fantastic time to do some cleaning, a thorough one, not only of your residence, but also of the clutter which could be standing between you and purchasing a house or investment property. Tackling these five things can prepare you for success, in any market, as you journey toward homeownership.

 

* Greater Scranton Board of REALTOR® data

 

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