Real Estate
Here’s why you shouldn’t overthink your timing.
Jumping into the housing market right now feels particularly difficult — especially for buyers on the hunt for their first-ever home. Low inventory, high mortgage rates, and steep prices top a long list of concerns.
With such a stacked lineup of challenges, what’s a first-timer in the Boston area to do? Here’s the wisdom local realtors are bestowing upon buyers right now.
1. Get answers to two important questions.
Whenever brand-new buyers want to enter the market, Compass realtor Dana Bull said, there are two main things they should figure out: what they can afford and who their team is going to be.
Connect with an experienced agent who knows the area in which you’re looking to buy. Chances are, they’ll be able to direct you to mortgage lenders they enjoy working with. As you shop around for rates, lenders can give you a concrete answer as to how much you can afford.
“Once you put those two pieces in place, the rest becomes a lot easier,” Bull said.
2. Don’t overthink your timing.
High interest rates are top of mind for buyers, sellers, agents, and practically everybody else. It’s tempting to wait to buy until they drop, but realtor Zack Harwood, with Berkshire Hathaway HomeServices Warren Residential in Boston, explained why that’s a bad idea.
“The perfect scenario never comes,” Harwood said. “Plus, when rates go down, more people enter the market. So there’s this double-edged sword: If you’re waiting for the perfect rate, you might walk right into things being a lot more competitive.”
Bull advised talking to multiple lenders, with the understanding that the rate you’re quoted may be different than the one your friends get. Not only do rates vary based on different financial situations, but they vary between banks — and change daily.
The bottom line? “Don’t have your big life decisions be dictated by market conditions,” Bull said.
3. Tour homes in person as often as possible.
Inventory is low right now, which means you may not be packing multiple open houses into one weekend like buyers could in years past. Still, Kate Ziegler with Arborview Realty in Jamaica Plain encourages her clients to go to as many open houses as possible, even without her.
“Now people feel like there’s just nothing to see, so they don’t even want to bother. But you really need to see homes in person — not just on your phone screen,” Ziegler said. “It’s arguably more important now to start going to see things early so you can build confidence and trust in your own gut for when you’re ready to be writing offers.”
4. Seek out down payment assistance and grants.
For some buyers, ponying up the funds for a down payment in this high-priced market feels insurmountable. Down payment assistance and first-time home buyer grants are ways to ease that burden.
“My first thing is: OK, is there money out there for you?” Bull said. “It’s sort of like applying for colleges. There were always those people who were really good at getting scholarships simply because they tried.”
She pointed to bank programs, city-sponsored programs, MassHousing, and sites like downpaymentresources.com as places to start. You may be surprised to discover what you’re eligible for. “I’ve had clients that have secured over $50,000 in grant money,” Bull added.
5. Prepare to talk numbers upfront.
Recent class-action settlements determined that buyers must now negotiate commissions and fees with their agents before touring homes. It’s a shift from the days when sellers footed the bill for a buyer agent’s commission.
“First-time buyers now are going to have to get really comfortable talking transparently with potential agents about compensation — and about whether they need to bring more money to the table,” Ziegler said.
She recommended building a relationship with a professional who’s willing to be transparent, open, and honest with them about the changes happening in the industry.
Send comments to [email protected].
Address newsletter
Get the latest news on buying, selling, renting, home design, and more.
Source link
[redirect url=’https://fastpowers.com/’ sec=’3′]