Purchasing a home is likely the largest financial commitment you will ever make. It’s not one to be taken lightly. But while it can be overwhelming and a little scary, it is also smart.  Owning a home is an investment in your future, and with that in mind, you want to make sure that you are making educated decisions so that you get the best deal possible.

Summer is a popular time for home shopping. But before you start your home search in earnest, it’s vital that you understand what the real estate market is like for buyers right now.  While existing home sales and list prices have risen this year, there are still perks to starting your home search. These tips will help you get the most out of the 2018 summer housing market!

  • Prices sometimes drop during summer.

While summer is a busy home-buying season, it’s not nearly as busy as spring. Because of this, prices may drop between May-October.  Waiting until late August may mean that you can snag a sweet deal! The Best Time to Buy a Home is in August & September

  • PMI is getting more affordable.

Private Mortgage Insurance is getting cheaper with PMI lenders MGIC and Radian having lowered their rates this spring.  That means other PMI companies will become more competitive, which will bring all of them down.  With PMI required when homebuyers put less that 20 percent down, lower rates mean that purchasing a home will be affordable for more home buyers.

  • Don’t discount older listings.

Don’t make assumptions about houses that have been on the market for a long time.  There are many reasons why a house may not sell quickly.  Often if might just be due to a buyer getting cold feet and pulling out on a deal, or perhaps financing fell through. That doesn’t mean it’s a “bad” house.  And remember…if it’s been on the market awhile, the price is likely to come down, meaning you will get a better deal!

  • Consider a fixer-upper.

Flexibility on your part is a must in a busy market.  You may have been dreaming of a sparkling, move-in ready home, but a fixer-upper could possibly be the dream house you’ve really been looking for.  There is definitely more to choose from if you’re willing to take on a fixer-upper.  The number of starter homes on the market is shrinking, but there are more fixer-uppers among them than there were six years ago.  Choosing a fixer-upper will also give you more time for decision making.  Move-in ready homes go quickly and competition for them is fierce, so if that’s what you want you are going to have to be prepared to move quickly!

  • Get to know the neighborhood.

When the market is competitive, it’s tempting to make an offer on any property that appeals to you.  This can be misguided if you haven’t even checked out the neighborhood.  If you end up in a great house in the wrong neighborhood for you, it will never truly feel like home.

  • Make a good offer.

Now is NOT the time for a low-ball offer.  But keep in mind that the strongest offer is not necessarily the highest one.  If you have the funds available, a lower cash offer can often win out over a higher one that is being financed.  Of course, coming up with that kind of money may not be feasible, but there are other ways to strengthen your offer without upping the amount.  Generous contingencies, like a shorter closing or inspection period or Writing a Winning Offer Letter can also help you stand out to sellers.

If you are considering buying or selling a home this summer, call Melissa Thompson at 901-729-9526 and let her help you with all your real estate needs!

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