Buying a new home is not an easy process these days. It can be time-consuming and frustrating. Here are a few tips to keep in mind:
- You must be pre-qualified or pre-approved for a mortgage (assuming you are not a cash buyer) before looking at any property.
- If you are an owner-occupier, you may find yourself competing for properties with investors, most of whom are cash buyers. If you are trying to purchase a property that is attractive to investors, you will most likely need to offer more than a cash buyer for your offer to be considered by the seller.
- List price may not mean a whole lot. We are seeing some properties priced below market and some priced over market, some on purpose and some not. It is really important to know the market and what the “comps” are before making an offer.
- The type of financing you use to purchase a property may be dictated by the type of property. And you may need a different lender for a different type of financing. The key is to remain flexible. The bank that provides your initial pre-qualification or pre-approval may not be the lender that ends up financing your purchase.
- If you are planning to purchase a condo on the south side of Chicago with FHA financing, you will have limited options; very few condos are approved for FHA.
- Understand the short sale process and the pros and cons. We spend a lot of time on this subject in our Home Buyer Workshops. There can be good value in a short sale, but there is considerable uncertainty as well.
- The inventory of properties available for sale has gone down and prices are going up. There are fewer properties on the market and more buyers in the market. This is classic supply and demand - prices are rising.
- Buyers don't pay commissions - all commission are paid by sellers. It is in your best interest to be represented by your own agent. A good agent can save you time and money!
If you have any questions about particular properties, the buying or selling process, or the market in general, please don’t hesitate to give us a call.
We specialize in working with home buyers and sellers on the south side of Chicago.
Please give us a call!