The competition for buying a home gets hot and steamy in the summer time. It’s an exciting time of year to explore new neighborhoods and imagine cookouts with family in your new backyard. But before you start getting too excited it is important to understand the housing market for buyers and how you can end up with the best home and price for you.
Coming off of the spring market summer should be just as strong. There is a lot of new real estate out there and the home sales and list prices are rising. Doing some research before you go house hunting will help you get the most out of the summer’s housing market. Here are some tips and facts to the summer market in Hampton Roads-
Summer Housing Market Facts
Prices drop during the summer.
Home buying can be a crazy time and the perks of buying in the summer is that home prices tend to drop from May through October. Patience can be key when buying a home and if you can wait until late August, sometimes you can find good deals. Some home owners are eager to sell before a school year and house listings can get a price cut.
PMI is getting more affordable.
Financing for a new home can be expensive and having a private mortgage insurance that is cheap can change everything about buying a new home.
Mortgage Insurance companies are going to be competitive, so if some are dropping their prices the other companies tend to follow suite. Most home buyers are required to get a private mortgage insurance when they only have less than 20 percent of their down payment. That means it will be cheaper for some buyers and they will be able to get into their new homes a lot sooner.
Summer 2018 Home Buying Tips
Don’t discount older listings.
When home have been on the market longer than a week, some people think that is a red flag. However, that is not always the case and it often could be the buyer that pulled out of a deal or got cold feet. Due to peoples’ assumptions about older listing in busy markets the delay in sale could cause a price drop. Older listings can be diamonds in a rough when it comes to finding good deals in the summertime.
Consider a fixer-upper.
Buying a home, it is important to be flexible and sometimes that means going with a fixer-upper. A lot of home buyers imagine a dream home that is move in ready because there are so many out there. The number of starter homes are dropping but there are more fixer-uppers now than a few years ago. If you are dead set on a fixer upper you will need to be ready to move quickly because there are usually only a few options at a time.
Get to know the neighborhood.
When there are competitive markets it is easy to put an offer in on any listed property if it fits your criteria, but it is important to know what the neighborhood is about before you end up in the wrong neighborhood. You want to feel like home when you are driving into the driveway, so it is vital to take some time to do commo=unity scouting before making an offer on a new home. When buying a home, knowing if there are playgrounds or nightclubs could be vital to your quality of life in your home.
Make the strongest offer—even if it’s not the highest.
There is a difference between the strongest offer and the highest offer when bidding on a home. Obviously low-ball offers are never appropriate but having cash can put you ahead of even someone with a high offer. Offering to pay with cash is the secret to winning a bid, if you can financially provide cash.
Providing cash is not always easy so there are other ways to make a strong offer that do not require a lot of money. The buyer could make generous contingencies such as a shorter closing or inspection period. Sometimes even having a great offer letter can make your offer stand out among the crowd.