10 Real Estate Hacks That Every Buyer Should Know

Since the start of the pandemic last year, so many experts and would-be buyers have talked about an impending market crash. And while it may be tempting to wait for prices to plummet, you could end up paying more if you wait to buy a home.

For example, if you purchase a home for $350,000 today with a 2.5% interest rate, your monthly payment will hover around $1,106. However, if you waited for prices to drop, rates would likely increase—so if you bought that same home for $300,000 with a 4.5% interest rate, your payment would jump to $1,216!

Believe it or not, a grand majority of buyers aren’t putting down the traditional 20% to purchase a home. According to the National Association of Realtors, the average down payment for repeat buyers was just 12%—and for first-timers, that number drops down to 6%. If you want to stand out in a sea of other buyers, it’s crucial to put down as much money as possible. Not only will this show sellers you’re serious about their home, but it will also help you start building equity right away.

Don’t have enough saved up yet? The federal government—as well as some state and local governments—have grants and assistance programs that can help strengthen your down payment at no cost to you.

Not sure where you want to live? Having trouble deciding between a single-family home or a condo? Haven’t set a budget? Nowadays, buying a home is a fast-paced experience, which means you want to plan out as much as possible. Consult your real estate agent for advice, and be sure to research your target neighborhoods so you know what to look for.

Before you even think about buying a home, take some time to really get to know your finances. Paying off as much debt as you can, calculating how much you have saved for a down payment, and improving your credit score will all make the buying process much easier!

It’s also a good idea to get preapproved for a mortgage before you start searching. You won’t just find out how much you can afford; preapproval also gives sellers peace of mind about your financing.

In today’s market, it’s not uncommon for a listing in a popular neighborhood to receive more than few offers. In fact, over half of homes sales last year resulted in a bidding war!

Want to beat out the competition? Start by searching for homes that are a little below your budget. You might be surprised by what you can find, and you’ll have an easier time outbidding other buyers.

If you really want to succeed in today’s market, it’s time to put your money where your mouth is. All-cash deals are the easiest way to reel a seller in, but this isn’t always a feasible option for every buyer. However, you can still up the ante by submitting a higher-than-usual earnest money deposit or offering to pay closing costs to catch a seller’s attention.