3 Ways to Prepare to Buy in a Tight Real Estate Market
The Metro Milwaukee real estate market will likely remain competitive as we start the New Year. In 2018, for the most part, a property in reasonably good condition often received multiple offers, sometimes over asking price, and usually in the first few days on the market. 2019 may well bring similar circumstances, so we recently sat down with Katie Wakefield of Firefly Real Estate to gain some perspective on three ways buyers can best prepare themselves.
1. Shop Local
Some of the best Real Estate agents focus on a particular market or two. If you’ve targeted a specific municipality or neighborhood, team up with a local expert.
Though so much communication today is electronic – and efficient – the first meeting with your Real Estate agent – in person – is time very well spent. Plan on discussing your needs and be willing to offer up some basic detail regarding financing, including down payment percentage and specifics from your current mortgage, if applicable. Follow that conversation up with a thorough Mortgage Pre-Approval.
3. 2 P’s
Stay Positive and Patient. Katie maintains that there is always a house out there somewhere and it’s rare that buyers end up empty-handed. Understand your constraints, and put your best foot forward. If your offer isn’t accepted, you can move ahead knowing you’ve done your best.
An experienced Great Midwest Bank Loan Officer understands the importance of preparation in a tight real estate market. When it comes to financing your purchase with your best foot forward, keep the following ideas in mind:
At Great Midwest Bank, our Loan Officers understand the importance of allowing you to buy a home without first selling your existing place. A Home Sale contingency might mean you’re at the back of the line when competing against other buyers, especially those willing to pay cash.
To avoid this obstacle, a Great Midwest Bank Bridge Loan could be the answer – we simply tap the equity in your current home for a down payment. This Bridge is usually in the form of a Home Equity Line of Credit where only interest payments are required. By utilizing this tool, borrowers can often avoid the need to sell their place first and have the pleasure of a gradual move instead of making it the same day. Be sure to set some reserves aside as you may face the prospect of two mortgage payments if your house doesn’t sell in short order.
An appraisal contingency can be another challenge. With homes selling in some cases for something higher than the asking price, it’s not a foregone conclusion that the appraised value will be at or above the sale price. In the rare event in which we’ve seen that occur, we do all we can to prepare borrowers in advance. In most cases, even if the sale price can’t be negotiated down, other options exist to still buy the home, either in the form of additional down payment funds or considering private mortgage insurance options.
Shop Local. Again.
Real Estate professionals truly appreciate the expertise that a local Mortgage Lender like Great Midwest Bank brings to the table. Our rock-solid pre-approvals leave nothing to chance, giving you the best chance of having your offer accepted.
At Great Midwest Bank, our seasoned Loan Officers see enough transactions and have been through real estate cycles to know what it takes to get you in the best position to buy. We pride ourselves on accessibility – days, nights and weekends. In a tight real estate market, we know you might have questions that need to get answered quickly.
Buying in a tight market requires a team effort. Rest assured, Great Midwest Bank will be there to help!