Should You Wait To Buy A House?

Should I wait to buy a house in Hampton Roads until next year? It’s a question on a lot of my clients’ minds. We’ve all heard horror stories of bidding wars driving the price of homes up beyond the original list price. Buyers are losing out on homes even when making what would have been an extremely competitive offer in the past.

Recently, I’ve seen so many articles suggesting that it’s better to wait until later to buy your home, but I’m not convinced.

There are factors in your favor today that make it a good time to buy despite the market being more competitive than in past years

What’s making the housing market so crazy right now?

Mostly, the problem with the housing market in Hampton Roads (and throughout the country) is the lack of inventory.

It comes down to basic supply and demand issues. Prices are up and inventory is hard to come by (have you even seen the cost of lumber?!)  Even though the pandemic has loosened its grip, we’re still feeling the impact and the housing industry has been hit hard.

It’s definitely a bit of a seller’s market right now. People are offering over list price, homes are going under contract in record time, and competition with all-cash or contingency-free offers are real. There are all things that, before the pandemic, REALTORS would see once in a blue moon.

Is there ever a perfect time to buy a house?

There are two answers to this question and two schools of thought. 

No – there’s not a “perfect” time to buy a house in the sense that ideally a buyer would want the perfect storm of low costs and high inventory; this gives buyers more bargaining power.  Those are things that in 2021 you probably won’t see.  If you should wait to buy a house looking for that perfect market, well, you may be waiting forever.  

You can hold off purchasing, but how long will you wait?  Can you wait that long?  Will rent continue to rise? And there are good things about the market right now, too, especially the mortgage rates we’re seeing!  

The other answer is, of course, YES!  There’s definitely a perfect time and that is when the circumstances of your life align so you can purchase a home.  If it makes sense for you to purchase a home then don’t be intimidated by this market. Plenty of people are becoming homeowners in 2021 with the help of a market savvy REALTOR.

Search HAMPTON ROADS LISTINGS HERE

Should you wait to buy a home in Hampton Roads or is now the right time for me?

A few things to consider as to whether or not you should wait to buy a home:

Your income is stable.

It’s pretty important to feel secure before you buy a home.  If you have continued to work uninterrupted through the pandemic and are likely to continue in your position it may be time to buy.

No one has a crystal ball but feeling secure in your job and your income is a good starting point!

Your debts are reasonably low.

We all have debt.  But if you want to be in the strongest position to make a competitive offer in today’s market, you’ll want to have a strong handle on your expenses and purchasing power.

If you’re considering buying a home, talk to a loan officer to help you decipher your debt and analyze the options that are available to you.

You have enough to cover the down payment and closing costs.

Sellers covering closing costs are a thing of the past – at least for the foreseeable future!  Make sure you have a healthy amount of savings to include your down payment and the closing costs.

Mortgage lenders often dig deeper into your bank accounts than you’d expect during loan underwriting. Usually in far more depth than they did when they prequalified you.  If you’re keeping your old home as an investment you may need a few months reserves to cover that mortgage. If you are looking to sell then it’s important to understand how to be competitive when you have that kind of contingency. Your REALTOR can best help you determine your strategy for a competitive edge.

Remember, too, that emergencies can – and do – come up!

You have a solid credit score.

These days, everything matters, including your credit score.  To compete you’ll want to make sure yours is as high as possible.  Check your credit report and address any inconsistencies before you get too far down the home buying pipeline. Also understand that lenders use a specific FICO score and have different guidelines to qualify you for a loan. Your loan officer is the best resource to get you started on the right path.

Work with a REALTOR who knows the market in Hampton Roads

It’s hard everywhere, but there are unique features to each market that only an experienced REALTOR can prepare you for.  Working with someone who can help you navigate the tricky market will dramatically improve your chances for success.

Work with someone who can help get you into the home of your dreams despite the challenges of the market.  You need to be ready if the right property comes along and that flexibility is dependent on a relationship with a REALTOR. REALTORS have access to listings in real time, not like syndicated sites that pull listings days later. If you are using one of the “big real estate” search sites, you are already at a disadvantage.

Read on the different cities in Hampton Roads HERE

Buying a home, even in 2021, can be fun and rewarding ending with you finding your happily ever after.  I can help by pulling comps on similar properties, talking you through market conditions, and making an attractive offer. I’m happy to discuss the market and help you decide if you should wait to buy a house or if it’s time to start shopping.

After all, there are a lot of things working in your favor including the low interest rates on mortgages. If you have a home to sell you may be able to sell for more now than in the past!  Now may just be the perfect time to jump in on that investment train, especially if you’re ready to put some roots down in Hampton Roads.

Let me help you love where you live.  Call me today at 240-381-5596.