Perhaps you are planning on buying a home in 2021. Whether it is a first home, a larger home, or even an investment property, all signs point to a continued tight inventory. Needless to say, it should be a seller’s market for some time as well. However, this does not mean that you can not find success as a buyer. It does mean that you need to be prepared with a plan and ready to make quick decisions. We discuss a few tips to help you achieve success in your search.
Have a plan and start your search early
Prior to viewing your first property, it is highly recommended that you speak with a mortgage broker to obtain a pre-qualification. Of course, this is assuming that you are obtaining a loan to purchase the property. If you are a cash buyer, this certainly does not apply to you. In obtaining a pre-qualification, this will better equip you with what price range to focus your search on. If you do not have a mortgage broker, your real estate agent can provide you some recommendations.
Another best practice in preparing for your home search is to scout potential neighborhoods prior to embarking on home showings. We recommend driving through neighborhoods in the evenings and on the weekends, as this is when most people should be home. This will give you a better feel for a particular neighborhood. Once you have determined a budget and a few neighborhoods of interest, your real estate agent will be able to provide various options to view along with a comparative market analysis for the various properties.
Make quick decisions with a compelling offer
If a property is priced appropriately in this market, it should sell extremely quickly. Therefore, it is recommended that your real estate agent place you on automatic email alerts for properties that are listed and meet your search criteria. As a buyer, you will want to be swift and flexible in order to view the property as soon as possible. Oftentimes, this will even mean putting an offer on the first day that you see it. Although some thorough buyers may think this approach is irresponsible, it is not. Keep in mind, if the property is priced appropriately it will sell quickly. As a buyer, you simply want to get the property under contract and then you still have time to do your due diligence. Typically, you should have a 7 – 10 inspection period to conduct your due diligence and analyze your decision. Should you change your mind on the property for any given reason, you may still cancel the contract within this inspection period.
Depending on the age and location of the home, you may want to also hire various contractors to inspect the property. While a general home inspector will be able to give you a good idea of the overall condition of the home, some areas may require specialized investigation. One of the most common items that this applies to in South Florida is plumbing. With many properties built in the 1970’s or before, cast iron plumbing can be problematic in these homes. A qualified plumber can greatly assist you in investigating the sewer lines to confirm no defects.
The consensus among housing economists is that we should still see price appreciation in real estate during 2021. With this said, we are continuing to see relocations to The Sunshine State from various parts of the country as remote working environments become more commonplace. Therefore, the competition for a tight supply of homes for sale should continue for the foreseeable future. This underscores the importance of being prepared with a plan along with a team of professionals such as a real estate agent, mortgage broker, home inspector, and real estate attorney.
Although this may seem intimidating to some buyers, at Live South Florida Realty, Inc. we make this process as simple as possible. Equally important, we will ensure that you are being educated along the process to make you feel even more comfortable. We are here when you are ready to purchase your slice of paradise!