Home Prices Are About to Rise; Here’s How to Buy Fast Before They Do
As home buying demand starts to pick back up, home prices have started to rise again. As of May 2020, the median national listing price was a whopping $330,000 — up 1.6% over last year and a new high for the country, according to Realtor.com.
In 35 of the nation’s biggest 50 metros, price appreciation sped up in May, with the average metro seeing a 3.3% uptick in prices for the month. Los Angeles saw the biggest jump at nearly 15%, while Pittsburgh was close behind at 14%.
Unfortunately, it doesn’t seem like these recent increases are an anomaly. Here’s how Realtor.com summed it up: “Based on this trend, listing prices could reach new highs throughout the summer home buying season, when prices typically see their yearly seasonal peak.”
If you’re considering a new home purchase this year, that means acting fast is more important than ever — at least if you want the best price.
Want to make sure you buy before home prices go up?
Here’s how you can speed up the process and snag those deals ASAP:
1. Set up listing alerts.
Scouring listing sites is tedious and time-consuming, and doing it daily (or multiple times a day) is virtually impossible.
If you really want your home search to be efficient, then setting up highly specific listing alerts is critical. You can do this through any listing site like Zillow, Realtor.com, or Redfin. Just set up an account, add in your filters, and enable daily email alerts for any home that fits the bill.
Make sure you’re as detailed as possible when establishing these. Add in the ZIP codes you’re considering, the square footage and number of bedrooms you need, your price range, and any other must-have amenities or features. The more thorough you are, the better-fitting your recommended listings will be.
2. Have your financial documents in order.
Much of the mortgage loan process consists of gathering and providing documents for your lender. Unless you’re already super organized, doing this can take a while — and it can hold up your home purchase unnecessarily.
If you really want your home buying process to go as quickly as possible, you’ll want to gather and organize your documents before you begin searching for your home.
Just a few of the docs you’ll need include your last two tax returns, your last two W-2s, and your last few paystubs. Statements for your bank accounts and assets are also usually required.
3. Bring in reinforcements.
While you can certainly buy a home solo, the more help you have, the better — at least if you’re trying to act fast. Considering working with an experienced local real estate agent, ideally one with a lot of connections in the area, who can help you find well-suited properties in a flash. They might even know of some properties that haven’t hit the market yet, which can give you a nice edge in a competitive market.
A good loan officer can also help your home purchase move forward more efficiently, so make sure you have a lender in mind from an early stage. They can answer questions, guide you on the appropriate price range, and help you prep for your mortgage loan application — all of which can speed up your sale and reduce errors along the way.
4. Get pre-approved for your mortgage loan.
A pre-approval is important for any home purchase, but it’s particularly important if you’re looking to move quickly.
First, it can point you toward the appropriate price range and make for a more effective home search. More than this though, it also gives you a leg up on other buyers. If you find yourself in a bidding war, it might even be what makes a seller choose your offer over another. And that’s critical if you’re hoping for a fast sale.
Embrace’s Approved to Move™ program has an even bigger benefit, too. Since Approved to Move™ is actually a fully underwritten offer (meaning they’ve already verified all your financial documents and credit), this makes the closing process significantly more efficient — and faster. It’s just another way to speed up your sale and gain an edge.
The bottom line on buying fast
Acting fast is important if you want the best deal on your home. Another big perk to moving quickly? You’ll take advantage of the historically low mortgage rates the market is currently seeing.
Want to snap up those lower rates and prices? Get in touch with Embrace Home Loans today to get Approved to Move™ and start your home search today.