It's Safe to Come out Now
Psst, it’s safe to come out now! It appears that real estate investors have left the building and the Twin Cities real estate market is now wide open for consumers. No more competing for the home of your dreams against individuals whose cash offers prove so irresistible to sellers. Come on out of hiding!
Now, this isn’t to say we’re now in a buyer’s market. You’ll still find plenty of competition when shopping for a home in the Twin Cities metro region, but the playing field is a lot more level than it has been for the past few months.
This is especially good news for first time buyers, many of whom have been sitting out this overheated market. There’s proof of that in the numbers, as well. Nearly 32 percent of the homes sold in May went to first-time buyers. That number was at 27 percent in May of 2014.
Overall, home sales in the Twin Cities jumped more than 22 percent in June.
Before you dive in
If you won’t be paying cash for your Twin Cities home it’s important to be 100 percent prepared to make an offer on a home before looking at homes. This means having your financing arranged so that you can submit a strong offer quickly.
Then, decide exactly how high you are willing to go when it comes to price. Sure, the lender may give you a high-end number, representing the most it will loan you, but that doesn’t mean you should spend that much. Crunch the numbers to determine how much of a house payment you can truly afford and then vow to not exceed that number, regardless of how much you love a home.
Finally, get clear on the type of neighborhood and home you want. If you need to live near a certain school or near public transportation, let us know that so we don’t waste your time showing you homes that won’t work for you.
Determine your highest priority in a house and let us know that as well. For instance, we have a client with three dogs, most of them geriatric, and she insists on a home with tile or wood floors (no carpet). That’s her hot button. She won’t even look at a home with carpet unless it can be ripped out to reveal hardwood below.
We know that most of our clients tool around the Internet looking at homes for sale in the Twin Cities. In a hot seller’s market, however, that isn’t enough. We suggest you sign up for our Home Finder service. It’s free and it gives you one more weapon in your house hunting arsenal.
Image: Eric Castro/CC by 2.0