Housing market is crazy hot right now as sales have continued to soar this 2022.
More than 93 percent of homes purchased by corporations as of May 2021 were bought for under $300,000. Many of them were in predominantly Black neighborhoods. (Charlotte, NC)
Tagged along with high demand is having fast-paced decision-making. In this episode, we run through some home buying tips to help you decide quickly yet efficiently in acquiring your dream house.
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12 Tips for Buying a Home in a Hot Real Estate Market
Whether you’re searching for your first home, upgrading from a starter house, or downsizing for retirement, you’re preparing to jump into the real estate market. In this article, Medi-Share listed down 12 tips for buying a home in a hot real estate market.
What Jen + Jill have to say:
Jill discusses the importance of clarifying needs vs wants. Jen also agrees that credit scores matter. 3.5% (you need extra in case of appraisal gap), consider local but compare national, get preapproved at several lenders, and add 30% to monthly mortgage payment to predict total payment.
Telling everyone also helps. Getting an off market deal through word of mouth can save you a lot. Additionally, we were seeing $60k to $70k over asking, no inspection, cash offers. In some states, like Florida, about half of the homes sold were paid for in cash, according to the National Association of Realtors, elsewhere we see 25%. Companies like Ribbon, Orchard in Texas, and Homelight will charge you 1% to 1.5% to make a cash offer on your behalf. No contingencies and no demands of sellers.
To add, be prepared to put in an offer every week and do this for at least a few months until you win one. Lastly, offer, lose, cry, drink wine, and start again.
Housing Market Predictions 2022 to 2025: Crash or Boom?
What are the housing market predictions for 2022, 2023, 2024, or 2025? This appears to be a question that is asked quite regularly these days. Norada Real Estate tries to answer the question in this article.
What Jen + Jill have to say:
According to the article, “prices are rising due to a mismatch between supply and demand, but this is not a housing bubble. Many experts predicted that the pandemic would cause a housing crash on par with the Great Depression. That, however, is not going to happen. The market is in far better shape today than it was a decade ago. The housing industry has had a boom last year, with the largest annual gain in single-family house values and rentals, historically low foreclosure rates, and the highest number of home sales in 15 years.”
Jen and Jill further discusses the housing market predictions from 2022 to 2025.
One tip about the home buying process nobody told you that you wish you’d known
Jill says everything is negotiable (except for the stamps) and you need so much more cash than you think. For Jen, it’s the realtor!
Bill of The Week
Thank you Emily for sharing your bill about comprehensive car insurance – we are so glad you are ok after your ‘run-in’ with the deer!
Thanks so Much for Listening!
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That’s awesome Vanessa! Thanks for listening and if you want to check out our monthly challenge community head to frugalfriendspodcast.com/club to see what challenge we have coming up next.
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