In summer, the weather is not the only thing sizzling. While it may not be the busiest season in the home buying market, summer is without a doubt one of the hottest times for purchasing a property. The beautiful weather plays a big role in buying a home in summer, especially in California, as the sunny days make it more conducive for people to visit open houses. The bloom experienced in spring also helps to heighten curb appeal and make it easier for homeowners to boast of their outdoor living spaces. So if you're looking to buy a home this season, make sure to arm yourself with some important things you need to know!
Patiently Price Wise
Market prices tend to drop in the summer months as sellers who listed properties earlier in the year start lowering prices as they become increasingly motivated to sell. In fact, a Trulia report indicates that prices drop from May through October. If you are in no hurry to buy and can hang on until late August, you could find a really great deal, as that's when nearly 14 percent of listings get a price cut.
Old May Be Gold
When you're out visiting Open Houses, don't be wary of taking a look at older listings. It may be easy to think a listing that’s a couple of weeks or so old is a red flag, but that’s not always the case. It may be because a buyer got cold feet and pulled out of the deal at the last minute, or they missed out on getting approval and wasn't able to push through with the purchase. Whatever the reason, it may be worth your while to give those listings a second look if you’re looking to save money. Look for homes that have been listed since spring. The sellers might be more persuaded to lower the price if they're in a time crunch or eager to part ways with the home, especially if they haven’t had any interest in a few months.
Move to be Pre-Approved
If you’re looking at this process as crunch time; save time, energy, and multiple rejected bids by getting pre-approved. Getting pre-approved means you'll complete an official mortgage application and supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, which allows you to look for a home at or below that price level as well as enabling you to move quickly when you find the perfect place. When you make an offer, it won't be contingent on obtaining financing, which can save you valuable time and lets the seller know that your offer is serious thus preventing you from losing the home to another potential buyer who already has financing arranged.
Now is the best time to be even more flexible. In a competitive market, unless you are ready to move quickly you would be jostling for ownership for highly presentable homes. The solution? Consider going with a fixer-upper. According to a Trulia trend report, the number of starter homes on the market is shrinking, but there are 8.3 percent more fixer-uppers among them than there were six years ago. Look past the cosmetic features such as outdated carpeting, and think about the potential of the home. A lot of potential buyers have missed out on a good deal because they can't do this, so do not make the same mistake.
Spend Time With Your Agent
Make the most out of the pleasant weather by spending a little more time with your agent. Take advantage of this time to ask questions, schedule meetings, and see as many homes as possible. If you have someone who is willing to take care of you and guide you through the homebuying process, then the journey will be all the more enjoyable and worthwhile.