If you are not aware of the wild housing market conditions, you must be busy streaming all the episodes of Mare of Easttown. Buyers and sellers in Delaware County are feeling like they must act quickly and make wild concessions. BHCU, Your Delaware County Credit Union, wants to assure both buyers and sellers that you need to prepare yourself with three simple steps to succeed.
As you know, your home is one of the biggest investments, if not THE biggest investment, that you will ever make. The first step you should take to ensure that it is a wise investment is to work with a reputable lender. As buyers, we often look at homes, find one we like, and figure out how to afford it.
In today’s market, there are two advantages to working with a lender before you shop. First, you can secure a pre-approval letter for a loan amount or range that you can afford at the current interest rates. BHCU works with its members to help them know exactly what they can afford based on their income, existing debt, and covering the fees associated with buying and selling a property. If you are a first-time buyer, you may not be aware of the costs and taxes that are associated with the purchase. A reputable lender, who knows Delaware County, is going to be able to help you navigate this journey.
If you are selling a home and moving, another advantage of going to a reputable lender who knows Delaware County as a first step is that they will understand the value of your existing home. Based on your income and debt, they may be able to extend a bridge loan, also referred to as a swing loan that will enable you to purchase a new home while you are listing and selling your existing home. The housing market is moving so rapidly right now, many sales go to settlement within 60 days. If you are a seller and not under contract to purchase your new home, you may find yourself in an unexpected and indeterminant period of temporary housing.
After you’ve discussed your financial options with a reputable lender, you want to find a realtor that knows the market well and that you trust. To get the best guidance, you go to one of the best. Mike Mulholland of SellingDelco.com has over 2-decades of success in Delaware County. He and his team sell over 400 homes a year in Delaware County alone. For further evidence that the housing market is wild, his clients are averaging eight unsuccessful offers on homes before they are successful and have their offer accepted by a seller.
The process of buying and selling a home can be a very emotional time. You should work with someone that you trust. Talk with a few real estate agents and make sure that you both get along, feel they are listening to what you want, and give you insights into what is really happening in the communities you are interested in buying or selling.
You may have heard that some buyers are making offers that exceed the list price, waiving home inspection, and even waiving a portion of the appraisal by stating that they will bridge any difference in cash. Some of these tactics may not be necessary for the neighborhood that you are interested in, or if they are, it is important to know as you might want to look elsewhere before you fall in love with a house.
In addition, if you are considering listing your home for sale, you may also be considering making some cosmetic upgrades to improve your price. Before you invest any money in making modifications, speak to a realtor that you trust. Depending on your home’s age and condition, such improvements may not be necessary for this market. Wouldn’t it be great to have that cash to invest in your new home?
The final step to making buying and selling a home in this market a success is to have a plan. When you are armed with the information from your lender and your realtor, make a personal plan. Determine your price range for a home; this will prevent you from getting attached to a home only to find out that you cannot afford it due to fees and taxes. Define what offer concessions you are willing to make before put into a pressure situation.
For instance, are you willing to waive a home inspection, do you have the extra cash to cover the shortfall on an appraisal, or to be the winning bid, are you ready to allow the seller to rent back from you until they find a new home? Your realtor will be able to define the typical purchase offer value-adds and help you brainstorm some others that you may be willing to make.
Buying and selling a home includes some big decisions and makes a big impact on your financial health. BHCU knows that having a solid plan is the way to get to financial independence. If you would like more information on lending, buying, and selling in this wild housing market, please contact BHCU at bhcu.org or 610-595-2929.