First-Time Buyer Strategies for 2021
Posted Mar 21st 2021
If you are a first-time home buyer in 2021, there are a few things you need to be aware of, and the following strategies will help you purchase your dream home:
Get Pre-approved For A Mortgage Right Away
Buying power has increased because of the historically low-interest rates, and getting a pre-approval will help secure these great rates for about a three month period, so you will be protected if the rates go up. If the rates go down, you will not be locked in, so there are no downsides to this step.
If You See A House You Love, Request A Showing Right Away
The housing market is very hot right now, so do not delay seeing homes because properties are selling very fast, and other buyers can beat you to it. You need to make sure you are one step ahead, so choose a realtor who is flexible and consider virtual tours if in-person showings are problematic due to the pandemic.
Prepare For A Bidding War
There are a lot more buyers than sellers at the moment, so it is highly likely that a property is going to receive several offers. Bidding wars have been a part of the real estate industry for years but in 2021, this is now the norm, so you need to be ready for it. If you do find yourself in this situation, you will have to consider making a ‘firm offer,’ which means your offer will not have a financing or home inspection condition.
Make Sure Your Deposit Is Easily Accessible
In Ontario, you will have to provide a deposit within 24 hours of your offer being accepted, so you need to make sure you have access to it when you buy a home. The deposit is generally about 5% of the purchase price and should be in an account that you can access quickly and easily. It is important to note that because of the bidding wars, you may need to provide the deposit with your offer, meaning you may have even less than 24 hours to figure it out.
Understand That Home Prices Can Change Every Day
Benchmark prices are being set on a daily basis, so you may end up paying more than what was listed just a few weeks ago. This can be frustrating but you can use this information to make smart offers on the houses you want. It is better to increase your offer by a few thousand dollars than to see a similar property appear on the market a week later with a much higher price.
It goes without saying that there are a lot of new COVID-19 safety protocols in place, so the process of seeing a home has changed. The Baird Team can provide you with more information regarding these changes and will guide you through important buying strategies. If you are looking for houses for sale in the Oshawa area and want to work with a reputable real estate agent, contact us today!