2016 is shaping up to be a challenging year for first-time homebuyers.
According to RealtyTrac.com, in 2015, the percentage of owner-occupied home sales was 63.2%, the lowest level since 2011 . The surge of well-funded, experienced investor purchasers has increased demand in certain markets, driving up prices and increasing competition for lower-prices homes.
Many prospective first-time buyers are finding it more difficult to buy, as their offers are not as competitive as those from investors who offer all cash, higher earnest deposits, and no contingencies. Fortunately, there are a few areas where first-time homebuyers can be competitive in.
Find a Realtor who specializes in first time homebuyers. A competent, diligent Realtor can significantly increase your chances of getting your perfect first home. A well written, concise offer with a personal touch can set you aside from other buyers and motivate a seller to choose your offer over more competitive ones.
Look for sellers with needs you can be flexible on. As a [probable] renter, you have the added flexibility of your possession date and aren't dependent on selling your home in order to complete the transaction. Use this to your advantage and have your agent negotiate a better deal in return for being flexible on the move-in date.
Know your financing options. Finding an experiences lender with comprehensive knowledge of all the programs available to first-time buyers is a must. For some, it is possible to find mortgages as low as 3.5% down with no PMI. Having a firm idea of your price range will let you jump on properties as soon as they hit the market to ensure your offer is received first.
The Kori Kurtz team understands the difficulties facing first time homebuyers and has adopted specific strategies to make this process as easy and comforting as possible. If you are considering your first home purchase, contact SK team today for a consultation.