Buying a Home in 2021? Here’s How!
Buying a Home in 2021
Buying a home in 2021 may pose some unique challenges due to the current state of the economy as well as the pandemic. Knowing the process and being prepared is your #1 way to reach your home buying goal!
Let’s start the journey together!
A Few Facts about the Current Home Market
Before we get started, having facts about the current state of the local real estate market can give you a leg up.
- First, there are more buyers out there than sellers. That means we are locally in a “Seller’s Market” – more demand for homes, less supply of homes. In fact, December 2020 showed if no more homes came on the market, we would sell through the existing homes on the market in less than a month! WOW!
- Multiple offers and/or offers over asking price as more common than not. Buyers are trying everything to be the offer noticed and accepted by the sellers.
- Home prices are on the rise, still. Experts are predicting anywhere from 3% to 10% in 2021.
- Home mortgage rates are at or near record lows and the FED has said they will keep them there for a while. There is no crystal ball to know when that will change, unfortunately.
- Homes are selling quickly in our local market – 30 or less! Our team average for 2020 was 18.9 Days on Market which beat the 16 county area of Central Indiana.
Now that you have some background info, lets check out the process of buying a home in 2021 in our local market.
How to Buy a Home in 2021
#1 – You have to be pre-approved in this market.
Talking to and choosing a lender accomplishes a few very important details:
- You know what you can afford to spend on a home
- Allows you to decided WHAT you want to spend on a home
- Look at homes that fall within your budget, so you aren’t wasting your time looking at homes with mortgage payments you don’t want.
- Seller’s typically want a pre-approval letter to accompany any offers to purchase – that way they know you can afford it and will take your offer more seriously.
We find it is crucial to be pre-approved. Being able to move fast when the right home comes on the market is better than waiting to get a pre-approval after finding your dream home and potentially missing out.
#2 – Start your search online.
The best way to do this is through your agent. The Real Estate Pros agents can send you up to the minute listings as they go live on the local MLS. Only those homes that match your wants and needs are sent. Weeding out homes online and only visiting the ones that really interest you is smart. It can also save you lots of time.
Since the pandemic, shopping online first is not only smart but safer! Listings that have professional photography and a walk-thru video are more likely to sell faster because only serious buyers request in person showings.
#3 – Decide what is a “Need” and a “Want.”
Knowing what items you are willing to compromise on/not willing to compromise on can result in more home possibilities.
Your reason for moving can help with this, too. If you desperately need a fourth bedroom and that’s one of the reasons you want to move, don’t look at 3 bedroom homes. They won’t support your reasoning!
On the other hand, if a pool would be nice but not absolutely necessary, considering looking at homes with and without a pool – as long as the main “needs” are met!
#4 – Be prepared for competition from other buyers.
With the inventory at historic lows, there are likely many buyers for every home. Talk with your lender and your agent to come up with a plan about how you can make your offer most appealing to a seller. It’s not always about price, there are lots of other terms that can make a seller’s bottom line better!
What’s Your Home Buying Strategy?
The Real Estate Pros believe in guiding you through the process of buying a home with your eyes wide open! You need facts and you need guidance to make the best decisions for you/your family.
Our 3 Step Buyer’s Plan does just that, ensures you are ready and equipped with the information, knowledge and guidance you need to get your dream home.