With the rise of home prices and also a shortage of homes on the market, buying a home is being more challenging for first-time home buyers, in particular this spring. If you're trying to transition from renting to being a home owner, I strongly encourage you to act fast!
According to the National Association of REALTORS®, in March 2018 the average price of an existing home was $250,000. This is up by nearly 6 percent from just one year ago. In addition to the price increases, homes are also selling faster.
“The starter house is nearly missing in some markets,” says Jessica Lautz, NAR’s director of survey research and communication.
This is leading to a lot of buyers being priced out in some areas. Finding a starter home at a lower price is getting harder and harder to find. Just this past week, a home in the DFW area, listed for $475,000 had over 30 people come to the Open House. The home went under contract in a few days. And $475,000 is definietly not a "starter home" price - so just imagine the demand for lower priced homes!
How can first-time home buyers compete in this market? Well, to increase your chances, home buyers should get pre-approved for a loan, showing that they are a serious buyer. Also, be ready to act quickly when you find a home you like. Make a realistic list of "must-haves" - this should be three to . five items that are definite deal breakers. Get rid of that lengthy list of knit-picky wants! When you find a home that has those three to five must-haves - act on it and have your agent submit your strongest offer.
Another tip - don't wait until you have 20% down payment. Many aspiring home buyers think they need 20% down, however more than half of first-time buyers make down payments of 6 percent or less, according to NAR data from 2017. Both Freddie Mac and Fannie Mae support home loans to eligible buyers who put down as little as 3 percent on a home purchase, as does the FHA.
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
With the current market situation being geared toward Sellers, trying
"After retiring from the military and settling in South Arlington/Mansfield, I met the Baldwin's at a community garage sale in our HOA. About 3 years later, due to an unforeseen family situation, I desired to move from my home. Paula and Brad were my first choice! This couple were personal as needed and highly professional. Although Paula knew me well enough to speak on my behalf, she always gave me the courtesy to seek my opinion only for me to hear her suggestions and worked together for the best solutions. Needless to say, my home sold in 4 days and this experience was the best and HIGHLY recommend Brad and Paula to everyone. "