A recent article on the Wall Street Journal’s MarketWatch website discussed housing affordability and how home buyers can get the best deal when buying a new home. The article’s summary of the national market conditions showed that home prices will continue trending higher this year, but not as fast as 2013. Mortgage rates are also expected to rise, but estimates say they will do so gradually. Because of these two factors, home’s will be somewhat less affordable.
It is with these facts in mind that I echo these 6 pieces of advice for getting a better deal when buying a home in Knoxville.
- The sooner you buy the better. Simple logic tells us that if both Knoxville home prices and mortgage interest rates are rising, then it’s better to buy sooner rather than later to take advantage of lower prices and lower interest rates.
- Find yourself an expert and work with them. The last thing I want to do is bash other real estate agents, but just like in all professions, not everyone is created equal. Find an agent who is intimately familiar with the area where you want to buy your next home, who is on top of market trends, and who has proven themselves as a good negotiator.
- Know the local home market. Continuing off the advice in #2, a good agent will be able to look at a home’s price and tell you if it’s priced above, below, or at market value. This is key in knowing not only what to offer, but how fast you need to offer. Homes in the current Knoxville home market that are priced below market value are selling very fast, so if you delay in making an offer, chances are pretty good you will lose out to another interested party. If your agent isn’t armed with the information to educate you, then you may lose out on a home you love.
- Get your financing in order. As a Knoxville home buyer or a buyer anywhere for that matter, it is super important to understand how much house you can afford. This dollar amount may or may not be what the mortgage broker says you can qualify for. Think seriously about how much you are comfortable paying a month (they key term there is comfortable, don’t stretch yourself too thin). Having a ceiling price can really help when you start getting emotional during negotiations and are tempted to offer more than you should.
- Make yourself attractive to sellers. First and foremost a seller wants to know that you can afford to buy their home, so getting pre-approved by a lender and including a pre-approval letter with your offer is key. Also keeping the number of contingencies in your offer to a minimum is important. Oftentimes the highest price isn’t the most important thing to a seller. When wearing my listing agent hat, I tell me sellers to take into account which offer has the highest probability of closing, as well as which has an attractive offer price. If an offer can’t close, it doesn’t matter how good the offer price is.
- Expand your geographic search area. Depending on where you are looking for your home, sometimes you can get more for your money if you expand your search area a bit. I’m not talking about moving to a different county (although that is an option), but a subtle zipcode change can make a big difference in pricing. If you are trying to stay within a certain school district, there may be different pockets within that search area which may offer more house for the money. Being flexible on location can not only save you money, but can open up additional options and perhaps get you a better overall home.
I’d love to sit down and talk to you about the Knoxville home market. Contact me, Troy Stavros to discuss your goals in buying a home in Knoxville.
CLICK HERE to read the complete source article at MarketWatch.com.