When it comes to preparing for the spring real estate market, the majority of online advice is directed at sellers. In this event, you know the drill: Clean the nooks and crannies of your home, purge the unwanted and wait for the buyers to roll in.
But, for buyers, there isn’t exactly a lot of documentation on how to prepare for such a market. When we consider just how competitive such a market can be for buyers, it’s only slightly appalling that there’s minimal advice for buyers.
So, how exactly do you prepare for a market that’s fiery hot, competitive and just a touch stressful? Let’s find out!
Know Exactly What You Want
In a busy market, there’s no time to explore new areas or to hum-and-haw over which type of property suits you best. Before you officially begin your search, you need to know what exactly you want and which neighborhoods you’re interested in.
Are you interested in a townhouse or a detached home?
Is no-parking an absolute dealbreaker?
What are your top three neighborhoods?
In knowing the ins and outs of your wishlist beforehand, you can dive head-first into your property search once spring commences. It’s also important to understand the market enough for your wishlist to be realistic. This is something your real estate agent can help you understand and come to terms with.
Have Your Finances Prepared
When it comes time to biting the bullet and purchasing a home, you have to ensure that you are prepared financially. Of course, it’s important to start by having the necessary down payment and then to begin the process of qualifying for a mortgage loan.
However, you also have to prepare to pay a deposit directly after purchasing the home. For example, in Canada, the deposit is typically 3-5 percent of the overall purchase price. This must be presented in cheque form with the offer or within 24-hours of an acceptance. That being said, this money needs to be readily available in your bank account when you offer on a home.
Pre-Qualify for a Mortgage
In addition to preparing yourself financially, it’s absolutely crucial to quality for a mortgage before you begin house shopping. In doing so, you will meet with a lender and supply them with your financial documentation and discuss the details of your down payment.
In return, they will tell you the amount and the type of mortgage loan that you qualify for. This amount, rate and type will be held in place for a specific period of time. If that time run-outs, you will have to re-qualify.
Pre-Scout the Market
Sure, you might not officially begin your search until the start of spring. But, this doesn’t mean that you can’t get in on the action beforehand. In reality, the time before the spring market can be incredibly slow-moving in the real estate world.
But, this also means that it’s a great time to sit back and watch the market unfold. This is your chance to get to know what’s happening in the market -especially in your desired neighbourhoods. Get to know what homes are selling for, how long they’re sitting on the market and how many offers are being registered on properties.
Hire an Incredible Real Estate Agent
Last but not least, it’s time to hire the best agent for your search possible.
In terms of timing, you’re going to want to lock down this agent well before the spring market. Remember, this time of year is often the busiest time for real estate agents. Before your agent is balancing too many clients, you want to have their word that they will represent you in your search.
In doing so, you’re putting yourself in a better position to compete in what is often a competitive market. This is also the best way to ensure that you’re acting responsibly and not putting yourself in a dangerous financial position.
Let a Nobul Verified Agent help you navigate this process and save you money!