Mistakes Made In A Hot Market

The nationwide housing market still isn’t in full recovery, however, this summer has been the highest in home sales since the recession.

  • “The Census Bureau just revealed that new home starts rose 6.9% in June to their highest level in four years – up 23.6% from a year earlier.
  • In April, home prices rose for the first time in seven months, according to the S&P/Case-Shiller home price index.
  • The number of home sales pending rose 9.5 percent year-over-year from June 2011 to June 2012, as reported by the National Association of Realtors.” Trulia.com

With the market making a comeback nationwide, our local market is still going strong with new construction homes and existing home sales.  Read below for the mistakes not to make when you find that perfect home!

1.  Don’t panic – it can be very frustrating to find that perfect home you have been searching for and start to worry about it not being available the next day.  Even though homes can go quickly, the worst thing you can is act out of desperation.  Buying a home is more than likely, the biggest investment purchase you will make in your lifetime.  Don’t get panicked and impulse buy. You may try to talk yourself into something you really don’t want, or paying for something you really can’t afford in fear of not finding something better, but not wanting to loose the one you see.  Desperate is bad, but urgent is good.  If you see a great deal, and you love the home, this is when you want to jump on it.

2.  Taking your time – hesitating can be very devastating.  If you have seen all the homes on the market within your price range, and you feel that you have found the home you want, why wait to make an offer?  I have seen families find their perfect home, but wait a week before making an offer because they felt that no one else would take the home.  Wrong!  The home went under contract a few days later and they lost it.. Don’t wait on a home when you KNOW its the one.

3.  Don’t ignore the market – don’t be one of those people who thinks the market doesn’t apply to them.  If you start house hunting and refuse to pay attention to what is happening around you, you will get burned. You will end up loosing out of housing opportunities one after the other.  Don’t offer $20,000 under the asking price just because its what you see on the HGTV channel.  If homes in your current area are selling for the listing price and they are being sold at a good speed, listen to your Realtor and trust their expert opinion, or you may find yourself loosing out on your top 3 homes.

4.  Be financially prepared – in the Jacksonville, NC market and new construction homes near Camp Lejeune, you won’t be able to see homes or make an offer on a home without having the pre-approval letter from your mortgage lender.  What you think you can afford and what the bank thinks you can afford can be two completely different numbers.  If you find your dream home, you need to be prepared to write an offer if the occasion arrives, and not having your pre-approval with put a halt on your offer writing.

5.  Don’t overpay – in our area, it is real hard to over pay on your new home since for most loans you need an appraisal.  If the appraisal doesn’t meet the agreed on sales price in the contract, then the seller needs to match the appraisal price, or you can walk.  The appraisal is there to protect you as the home buyer, so even if the loan you are getting doesn’t require one, its always a good idea so you know where the home fits.

Now that you know what mistakes to avoid, start your search below:

New Construction Homes Jacksonville, NC

 

 

 

 

 

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