It’s safe to say 2021 looks a lot more promising than the year before. The Fourth of July celebrations should set the stage for the country to its rightful return to normalcy. With vaccines being given at a dizzying pace, everyone should be feeling giddy these days. To some extent, it looks like President Biden’s goal of fully vaccinating 70% of Americans — about 160 million people — may fall short.
But that’s still a lot better than most countries adversely affected by the virus. And that can be your cue that it’s about time you get to buy your first house.
On the other end of the spectrum, we’re still not out of the woods. The delta variant of the virus known to have crippled India is out there somewhere in America. Already, pundits are saying this variant is much more dangerous than the initial versions of the virus. Worse, it would greatly affect those who have not been vaccinated.
Before you even set out to buy your house, you must keep the essentials in mind. Certain realities should help you decide whether to move forward with your intentions. As you very well know by now, the marketplace is filled with opportunities. Making the most of these opportunities should help you get a more restful sleep each night.
First-time Buyers Get a Boost
Many things are looking good in the new administration. To boot, President Joe Biden has made it a priority to keep the virus at bay. Now, that certainly is a breath of fresh air when you look at how things are going. With the vaccines rolling out speedily, America is starting to look like a superpower nation.
But there’s another great news for you if you’re a first-time buyer — and one you shouldn’t forget. President Biden seeks to increase homeownership by shelling out $15,000 as assistance in down payment for first-time home seekers. In this regard, he plans to unroll the $640 billion housing plan. What makes this even more amazing is that you enjoy this tax bonus right away during the purchase. So you don’t need to wait a long time to get the tax break.
This is excellent news for many millennials today who could be suffering from the torments of ever-increasing monthly rentals and their unpaid student loan debts. Indeed, that could certainly be a shot in the arm for many wannabe first-time homeowners who finds themselves short of money for a down payment.
A More Competitive Home Buying Market
But don’t rejoice just yet. While Biden’s plans are worth the celebration, know that the market these days is ever competitive. As an increased demand is felt for homes, the bidding process becomes an uphill climb.
That means people are more vigorous at snapping properties these days than before. As supply is down and at a low, real estate is selling quicker than last year. Pundits put it at 21 days on average as the buying window usually at least three offers for every listing.
So how do you survive in such a cutthroat market?
It’s simple. You should position yourself as the right buyer for every property you vie for. You can do this by getting yourself pre-qualified ahead of time. You must have pertinent documents ready. We’re talking about W2s and needed bank statements to strengthen your buying posture. That way, when a worthy property gets your attention, you can more quickly. Of course, it helps a lot if you have a team to support you.
For one, this is where a conveyancing solicitor is extremely helpful. With their ability to iron out the buying process, they can speed up the purchase without you incurring bad buying decisions. Even better, their conveyancing fees are a drop in the bucket compared to the enormous benefits you get for their quality service.
For instance, these solicitors will double-check if the property you want to buy is devoid of major repair issues and is therefore worth your money. In such a competitive market, strategizing with a real estate expert is a treasure trove.
A tactic you can use in buying is not to request repairs and ensure the seller understands that your home inspection (by you or your solicitor) is only for information-gathering purposes. When you appear less demanding, far too often, you are in a better position to overcome an offer that could be higher than yours. It’s especially true if the seller wants to get rid of the property quickly.
Prices Are Bound to Hit a New High
It’s an interesting road for real estate this 2021. While home prices are rising, interest rates are kept at a historic low. So that means you’ll have to shell out a bigger down payment, but you’ll enjoy lower monthly home loan payments.
Realtor.com predicts home prices this year 2021 will be 5.7% above those of 2020. That’s quite a lot. Still, as mortgage rates are lower than last year, it’s bound to be one heck of a market. Then again, doing your due diligence should bid you well as always. It should get you closer to the dream house you’ve been vying for.