6 Ways to Find a Home in 2021 – Steps to Buying a Home

After a record year, the housing market is still hot, with average home selling prices rising by more than 20 percent Across the country. While many homeowners have chosen to sell their homes, new data from Opendoor shows that 38% of people looking to buy a home in the next year say they’ve put their search on hold. The main reasons? Thirty-five percent say the market is too intimidating, while 22 percent say they’ve already lost too many homes.

Many of my friends and real estate clients have experienced the reality of the difficult market. As homes sell out quickly and for more than the dollar amount listed, I hate to see people give up hope. Don’t let the tough market put you off your dreams! Homeownership is still possible, it may just take more patience and flexibility.

Understand what you can afford

The best place to start your home search is to be realistic with financing, so get pre-approved for a home loan and set a budget. While it’s tempting to look at homes outside of your price range, don’t. Set filters on your favorite real estate apps or make clear settings with your real estate agent. Sticking to what you can comfortably afford will help you avoid feeling disappointed later.

Embrace the unexpected

While you already have visions for a certain style of home or neighborhood in mind, you will find a world of possibilities when shopping for homes. You may even find something unexpected that you like! Be open to visiting a range of homes, whether it’s homes that are under budget and need manageable repairs, or homes ready to move into a different neighborhood than you had originally planned. Eventually, you’ll find a home that’s right for you.

Are you unsure of yourself? A good rule of thumb is to determine if a home you are considering is a place you would like to live as much, if not more, than your current home. If the answer is yes, then making an offer may be the right decision.

Palm springs desert house

Do not rule out properties requiring TLC

Buying a renovator isn’t for everyone, but if you’re ready to complete a renovation, investing in a home that needs major repairs can be a smart route to home ownership in a growing housing market. effervescence.

As the 57 percent of people who would consider buying a home to renovate on budget, my husband and I saw a huge opportunity when we found our current home in Los Angeles. After months of researching at the top of our budget, we knew the property was in a highly desirable location. More so, we have seen that under renovation could also serve as an opportunity for us to design a home that would be a perfect fit for our growing family and our changing lifestyle.

When evaluating a redevelopment, consider the selling price of the house and calculate the remaining budget you will have available to make improvements. Some updates, such as remodeling a bathroom or adding a second bedroom, can also add significant value to a property.

Inexpensive DIY Projects Can Transform a Home

If you’re more concerned with the look of a home and cosmetic changes than structural changes, there are countless inexpensive upgrades that can totally transform the look of a home to align with your personal taste.

A fresh coat of paint and accent walls can make a big difference, along with small, impactful upgrades like changing kitchen or bathroom hardware. You can get creative with wallpaper in bedrooms, marble contact paper on countertops, replant a garden and much more.

house with white fence

Consider other financing options

Today, one in five first-time buyers is a single woman. One of the most intimidating and stressful parts of buying a home is making a down payment, especially with just one source of income. Opendoor found that 27% of Millennials and 18% of Generation X say they will have to apply for financial assistance. Even more, 22% of Millennials and 18% of Gen X say they will have to live with friends or family to save enough money.

If you’re feeling overwhelmed by saving enough for a down payment, consider non-traditional financing options before you stop your home search altogether. Some first-time buyers may get help from family and friends, while others choose to withdraw money from their investments earlier than expected.

Consider using a guaranteed offers program

In this market, cash seems to be king. In reality, 25 percent offers are entirely in cash, against 15 percent just a year ago. The recent Opendoor poll found that 75 percent of sellers say that a funded offer should be about 10% higher than a cash offer – if your dream home is $ 500,000 and you haven’t made a cash offer, you will probably need to increase your offer $ 50,000 to be competitive today.

This problem is that most people do not have enough cash on hand to make an all-cash offer. Fortunately, there are companies that can help. Depending on where you would like to live, you may have access to a program of back-to-back offers. With cash-backed offers, a business will help you make a no-frills, all-cash offer, making you stand out from a seller. Buying cash also gives you more flexibility with your closing schedule, meaning you won’t have to worry about losing a home you really love.

Prequalifying for a fund-backed offer program is quick and only requires a letter from your lender. Some companies can also help buyers prequalify without affecting their credit, saving you time and stress during the home buying process.

It’s important to understand market conditions and be prepared whether you’re shopping for your first home or your 10th. A competitive market can mean losing a few bids, but don’t let that get you down. Be patient, stay focused on your goal, and use the losses as a learning experience to bolster your next offer. Once you earn a home, you will be proud to own it.

Are you currently looking for a home? Tweet us @BritandCo and tell us about your experience!

Featured Images via Alison Ives /@colorwars



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