Introduction to Homebuying This Season
Want to be a successful home buyer this spring and summer? Act decisively and swiftly, whether your market is hot or cool. That’s the advice from real estate agents in Boston (a hot, fast-selling market where buyers tussle over scarce houses) and in Dallas (a cooler, slower-selling market where competition isn’t so frenzied). We’re entering the time of year when the sales pace picks up even in sedate housing markets. Around 4 million existing homes will be sold in 2025, and roughly half of them will change hands from April through August.
Understanding the Market
In the five years since the beginning of the coronavirus pandemic, demand has exceeded supply in most housing markets. That imbalance still exists in the hotter markets of New England, the Upper Midwest, and much of California. The shortfall has eased (but not gone away) in some cities, notably in Florida, Texas, the Gulf coast, and the Pacific Northwest — those are the cooler markets. Real estate agents’ advice this homebuying season is consistent, no matter the temperature of the local market: Treat the search like a job. Get preapproved for a mortgage. And remember that desirable houses go fast.
The Race Goes to the Swift
Properties that are move-in ready — they’re still flying off the market in a matter of days with multiple offers, says Rich Rosa, a buyer’s agent and co-founder of Buyers Brokers Only in the Boston area (one of the nation’s hottest markets). Houses sold there in February had typically been on the market for 33 days, according to Realtor.com, making it one of the fastest-selling metro areas. Nationally, time on market ranged from a low of 22 days in San Jose to 118 days in Kalispell, Montana. Kate Ziegler, a real estate agent with Arborview Realty in the Boston area, says it’s essential to prioritize house-hunting on the weekends when you’re seriously searching. Relaxation might have to take a backseat to the job of finding a house.
Secure a Preapproval to Show Sellers You’re Prepared
It’s always a good idea to get preapproved for a mortgage when you shop for a home, whether sellers or buyers have the upper hand. When you get a preapproval, the lender takes your financial information, including credit score and income, and tells you how much you can borrow. Not only does a mortgage preapproval show you how much home you can afford — it signals to sellers that you’ve rustled up your financial documents and a lender has already assessed your creditworthiness.
Don’t Get Hung Up on Asking Price
You probably won’t pay the asking price for your next house. If the property attracts multiple offers in the first week or two, you might pay more than the asking price (if you make the successful bid). If the home lingers on the market for weeks without any serious offers, you might pay less than the asking price. What I tell my clients is don’t get too caught up in what the asking price is, says Rosa. Pricing strategies vary from seller to seller, and every property is different. Just because one place sells for 3% more than the asking price doesn’t mean other houses will too.
In Hot Markets, Consider Fast-Tracking the Inspection
Buyers often waived property inspections in 2020 and 2021, when mortgage rates were low and competition was fierce. Today, most buyers insist on property inspections. But in fast markets, buyers can employ a few tactics to mollify sellers. One such tactic is the “pre-offer inspection,” in which an inspector examines the house before the buyer makes an offer. So you’re effectively submitting a ‘clean’ offer without an inspection contingency because you’ve already done inspection, Ziegler says.
In Growing Areas, Consider New Homes
In some cities, new construction could be a solid option. We’re talking mostly about metros in the South and Southwest where developers build communities of hundreds of new houses. To make new homes affordable, developers often offer incentives such as reductions in mortgage interest rates. The reality is for first-time home buyers, it’s probably a great decision to buy a new home, Freeman says, because a well-built new house won’t require expensive repairs or upgrades in the first few years.
Conclusion
To be a successful homebuyer this season, whether in a hot or cool market, it’s essential to act swiftly and be prepared. Getting preapproved for a mortgage, not getting hung up on the asking price, and considering fast-tracking inspections in hot markets are all strategies that can help. Additionally, in growing areas, considering new homes can be a viable option, especially for first-time buyers. By following these tips and being flexible, homebuyers can navigate the current market and find their dream home.
FAQs
- Q: What is the most crucial step in starting my home search?
A: Getting preapproved for a mortgage is the most crucial step, as it shows sellers you’re serious and prepared. - Q: How long does it typically take for a house to sell in a hot market?
A: In hot markets like Boston, houses can sell in a matter of days, with some selling in under a week. - Q: Should I consider a pre-offer inspection?
A: Yes, a pre-offer inspection can be beneficial in hot markets, as it allows you to submit a ‘clean’ offer without an inspection contingency. - Q: Are new homes a good option for first-time buyers?
A: Yes, new homes can be a great option for first-time buyers, as they often require less maintenance and repairs in the first few years. - Q: How important is it to have a real estate agent?
A: Having a real estate agent is crucial, especially in hot markets, as they can provide valuable guidance and help you navigate the process.
