Even in a so-called sellers market, it can still be a good time to purchase a home. Here’s why.
Are You a Renter?
If you’re currently a renter, you’ll likely face an increase in rent at the end of your lease — especially in a tighter market in a robust economy. With interest rates still relatively low, it’s possible to finance a home with a monthly mortgage payment lower than your rent payment. On top of that, you’ll be building equity in your home and utilizing the significant tax advantages to owning over renting. Learn some important facts about mortgage pre-approval here.
Are You a Homeowner?
If you currently own your home, but wish to upgrade, a sellers market may also work in your favor. If your current home is in a desirable location and meets the size and price requirements for the majority of today’s buyers, you could walk away with a substantial down payment on your next home. That favorable scenario will keep your new mortgage payment under control and help build your future equity.
Be patient. In a sellers market, homes sell quickly and you may miss out on a few opportunities before finding a home you want at the right price — and having your offer accepted.
As always, do your homework. Speak to several lenders and seek out properties in areas that are likely to appreciate in value.