If you’ve been staying away from the home-buying pool this summer because you’ve heard it’s the “busiest season to buy,” here’s something that may make you consider dipping your toe into those waters:
Prices actually drop during the hottest months of the year. As the heat rises, home prices drop. Late August is usually when you can get the best value, as approximately 14 percent1 of listings will cut prices at that time. But buying any time after spring (between May and October) can get you a good deal for your money.
Another great reason to consider buying this summer: PMI (private mortgage insurance) is dropping, too. The big lenders Radian and MGIC dropped their rates this spring, which is going to cause other companies to see how low they can go. That means making the move will be cheaper, even if you don’t have 20% saved up as a down payment.
Still, make no mistake--the housing market is hot, hot, hot, and doesn’t appear to be cooling down anytime soon. So if a new home is on your list before fall, here are some strategies to help you get in the game and clinch the win on a great home (at a great price).
These days, any listings that remain on the market for more than a week can get the (undeserved) reputation that there are serious problems with it. Often times there’s nothing wrong with the house, and it’s just a combination of bad timing, cold feet from a buyer or some other random reason. So don’t be afraid to look at homes that have been on the market for a while, because the delay could cause the price to drop, allowing you to score a good deal.
Since bidding wars can get out-of-control for turnkey-ready homes, considering a home that requires a little elbow-grease can be a great option. Especially since there are currently 8.3 percent1 more homes that need “a little love” than there were six years ago. Save the money you would have spent on winning the bid on that move-in ready place and use it to turn another place into your dream home. Our 203K Renovation Loan program can help and offer you peace of mind that the repairs or renovations will be completed and that those costs will be rolled into your tax deductible mortgage from the start.
It’s easy to fall in love with any home that meets your criteria, but winning a bid in the wrong neighborhood will quickly make you fall out of love. Before you make an offer, check out the surrounding neighborhood and community to see if the vibe fits your lifestyle. You can also check out Nextdoor and other neighborhood sites to see what locals have to say.
These days, the highest offer is not necessarily the strongest offer. Generous contingencies can also make you stand out from the crowd. Consider waiving an inspection, offering a shorter closing time or anything else that would make the sellers’ lives easier and your bid more attractive.
By having financing in order before you make an offer will give you, your Realtor and the sellers that much more confidence. Contact KS StateBank today to speak to one of our loan officers and get a no-obligation conditional pre-approval. With our quality products and services, the convenience we provide through our online and mobile solutions, we’re in a great position to get you the financing you need to achieve your homeownership goals. Ready to take the next step? With our Purchase Ready program, you’ll have confidence when making an offer on a home knowing that it comes with an Underwriter reviewed Conditional Pre-Approval.
1 What You Need to Know About Buying a House in Summer 2018 www.trulia.com/blog/9-things-you-need-to-know-buying-house-summer/