So you’ve decided to stop giving all your money to your landlord, and convert that payment into a mortgage. Congratulations! That’s a very important first step on the journey to homeownership.
If you’ve been watching the market for a while, you’ll know that Portland is experiencing an unprecedented rate of appreciation. That means that the house you saw last year for $250,000 is now selling for $280,000. And while it’s tempting to think of appreciation as steady growth over time, in reality that $30,000 jump could happen in just a few months – we see the biggest increase in prices and the most competition in Spring. Price increases, pared with fluctuating interest rates, means your purchasing power is probably at its greatest right now!
Contrary to popular belief, the home buying process does not have to be long or drawn out. Once you’ve made the decision to buy, here are six steps to getting into your dream home, fast!
1: Get Pre-Approved
Doubtless you know this already, and yet many home buyers are hesitant to talk to a lender until they have already found a house they want. In our current market conditions, you must have a pre-approval in place in order for your offer to be competitive. And with lender turnaround times somewhere between a day to a week, that house you love might be gone if we wait for you to get pre-approved before submitting our offer. Save yourself the scramble and the heartache, and get pre-approved now!
2: Sign a contract with a Buyer’s Agent
When you’re interviewing an agent, make sure they are knowledgeable about the market conditions and what it takes to get your offer accepted. You’re trusting them with a huge financial investment, so it’s important that you feel they have your best interests at heart. When you find one you like, sign a contract that clearly states your expectations and terms of engagement.
3: Get Specific
Help your agent (and yourself) by being as specific as possible about what you’re looking for. The great thing about using a Buyer’s Agent, is that they are incredibly familiar with the current inventory and can refine your search as much as possible. Don’t hesitate to give honest feedback. Trust me, you’re not hurting their feelings, it’s a good thing to know what you want!
4: Set an Appointment
When you find a house (or houses) you want to see, contact your agent immediately. Sometimes the difference between a winning offer and a rejection is just down to timing. You want to be the first person through the door and be ready to act if you love it.
5: Write a Competitive Offer
If the house is new to market and well-priced, there is little chance of getting a “deal.” Remember, the list price is a starting point. Multiple buyers interested means you may have to go higher than that price – as much as $5,000 for every offer the listing agent receives. Your tactic should be to write the best offer you can, keeping in mind that price is not always the deciding factor. Your agent should find out what the seller is looking for (fast closing? rent back period? short inspection? early earnest money release?) and factor those things into your offer.
Remember, you can always negotiate repairs, credits, or price adjustments during the inspection period. A good agent won’t let you pay top dollar for a house that’s falling apart!
6: Get Back Out There!
If your offer isn’t accepted, don’t get discouraged. More than a hundred people are moving to Portland every day, and they are all looking for somewhere to live. This kind of competition means you might not get the first house you bid on. Take it as a lesson in the market and keep looking. Most of my clients end up loving their final house more than any of the ones they may have missed out on.
So there you have it, six easy steps to homeownership. If you would like more information on buying a home, or getting pre-approved, we’d love to see you at our Homebuyer Seminar on May 3rd at 6pm. Contact us with questions or to RSVP!
