Last Updated on September 6, 2022
What do buyers have in store for them this spring?
Inventory challenges, multiple offers, and increased listing prices will prove home shopping this spring to be difficult, but certainly do-able when you arm yourself with knowledge and an experienced Realtor by your side.
Here are our best tips for buyers in the 2022 spring housing market.
Get a feel for the market in your local area ahead of time
Nationally, the median listing price is still growing by double-digits compared to last year, but recent data shows last week was the first time since January that we saw a slow down in asking price.
Experts predict this trend will continue well into the year, as mortgage rates price some buyers out of the market. Soon, double-digit appreciation will decline down to more normal, single-digit appreciation rates.
Now that you have a clear picture of what’s happening in the real estate market on a national level, prepare yourself with accurate market info in your local area by leaning on the expertise of your realtor.
Sit down with your realtor and go over the comps, or comparable home sales in the area you’re specifically targeting before you start touring homes in person.
This way, you have a firm understanding of how much you can expect to spend and how much over or under the listing price you can expect to pay to win the bid.
Set a budget and stick to it
Understanding the market ahead of time goes along way towards creating a budget that works for both your homeownership goals and your finances. Don’t get caught up in a bidding war that puts you in harms way, financially.
Work with your realtor before you tour homes to set a maximum price you’ll offer for any home and stick to this number throughout the process.
Be smart
In an attempt to have their offer accepted, a growing trend among buyers has been to waive home inspections. We advise that you don’t waive home inspections, as it’s just not worth the risk down the road. Remember, a home inspection protects you (the buyer), as a qualified inspector reviews four key areas crucial to a safe and efficient home.
Get creative
While it’s not in your best interest to forgo a home inspection to help get your bid noticed, you can get creative in other areas to attract the home seller.
Beyond an attractive offer, a smart idea is to accommodate the seller’s future plans. A great tactic your Realtor may use is to contact the listing agent first to see what an ideal closing date would be for the sellers. It never hurts to be flexible with the closing date to entice sellers.
Make a clean offer
In a seller’s market, you must come to the table with your highest and best offer, free of unnecessary contingencies. Avoid asking for repairs on cosmetic items and instead focus on larger areas like plumbing, roof, HVAC, electrical, windows and doors, and health/safety concerns.
Keep reading: Why you should never waive a home inspection
