Due to a low inventory of homes on the market, the homebuying landscape remains competitive in Michigan. This trend is contributing to frequent bidding wars, especially as we approach the ever-crazy spring buying season. That being said, don’t let this discourage you. With a solid understanding of how to make your best offer, securing your place in the housing market—even under competitive conditions—is entirely possible.
Get Familiar With Your Budget
First and foremost, you’ll need to understand your financial capacity as this will guide you throughout the entire process. Consulting with a lender to secure pre-approval for a mortgage not only clarifies your budget but also signals to sellers that you’re a serious and prepared buyer. This alone could give you the upper hand in a competitive market.
Accommodate the Seller
Whether or not it’s a sellers market, it’s always beneficial to be highly accommodating when it comes to the seller’s needs. Make sure that your real estate agent communicates closely with the seller’s representative to understand their ideal timeline for closing. Demonstrating flexibility here, like offering the seller a rent-free occupancy after closing, can make your offer more appealing. Obviously each situation is going to be unique, but showing that you’re cooperative and considerate will differentiate your offer—which is critical in today’s market.
Explore a Variety of Home Types
The difference between the dream home you envision in your mind and the one you end up scoring could be different, but don’t let that scare you. Although you might see yourself owning a large new build, don’t overlook smaller options, especially as a first-time-buyer. This could be a condo or smaller home. These property types can be more budget-friendly and can help boost you to your next home in a few years time.
Broaden Your Search Area
Do you work from home? Are you looking to live in an area where frequent travel is still in the budget? If so, you’ll want to think outside the box when it comes to location. Property values are inevitably going to fluctuate across different neighborhoods, and by expanding your search to new areas, you might discover a stellar deal that wouldn’t be available in your current location.
Seek Advice from a Mortgage Professional
A quick Google search will provide tons of apps and websites that will crunch numbers and tell you what you can afford, or estimate mortgage payments. But nothing compares to consulting with an experienced mortgage lender. Not only will a lender give you a more accurate budget and payment estimate, but they can reveal more loan options that you may not have known of otherwise. More times than not, buyers underestimate what is actually available to them and which programs may be better tailored to their needs.
About Julie Krumholz from Superior National Bank
Ready to start the homebuying process for 2024? Julie Krumholz from Superior National Bank can help.
With over 30 years of experience, Julie Krumholz is no stranger to shifting housing markets. She’s experienced nearly every facet of the mortgage industry, from processing, closing, loan origination, underwriting, QC auditing, and even co-owning a mortgage brokerage firm. Julie uses her wealth of experience to match homebuyers with the best mortgage program for their needs and helps streamline the mortgage process.
Call Julie Krumholz for help with your homebuying needs at 586-382-5482
