(Photo by Matthew Henry from Burst)

Does everything going on in the real estate market right now make you just want to wait it out and see what happens instead of starting your house hunt? While that sounds like it might be a good strategy for uncertain times, it would also be a shame to miss out on some of the benefits of a real estate investment right now — like some of the lowest mortgage interest rates we’ve seen! 

If you feel ready to make the big step to purchase real estate this year, but think you might put your house hunt on hold because of bidding wars, low inventory, and contingency waivers, let’s look at the circumstances and see if waiting will really put you in a better position down the road. 

Waiting on Your House Hunt Because… The Market is Tight

Every news report you hear confirms that home prices are rising and sales are more difficult due to a lack of homes on the market. And this is true, but not a good reason to delay your house hunt. Furthermore, recent increases in new construction that are finally happening aren’t projected to ease inventory shortages for some time. 

Many prospective home buyers, especially first-timers looking to enter the market, are considering waiting to buy since they can’t get the house they want. But under reasonable expectations, there are homes out there coming onto the market that are perfect starter homes.

Approach the home buying process with honest expectations for your budget, and be willing to wait it out until you find the right thing, but be prepared to act quickly when the right property comes on the market. This is the right way to conduct your house hunt.

Waiting on your House Hunt Because… Budgets are Tight

While you might have saved for years to be able to make a down payment, the recent rise in home valuations is making it harder for prospective buyers to enter the market.  This doesn’t mean you should wait on your house hunt.

But while your savings might be quite enough to afford what you’re looking for right now due to escalated prices, keep in mind that the market is stabilizing, and conventional wisdom on the home buying process isn’t always true anymore. For example, you don’t need a 20 percent down payment to purchase a home these days; mortgage programs for 3 percent, 5 percent, and 15 percent down are gaining popularity to help homebuyers – first-time buyers in particular. And current and former members of the military can benefit from Veterans Affairs loans that even allow you to put nothing down on your mortgage!

But we also know that there is more to the process than securing your down payment. It may seem like mortgage lenders are stricter, and with so many people interested in buying homes and refinancing, it can feel like lenders don’t have time to deal with the “smaller fish” or entry-level buyer. Shopping around for mortgage lenders is an arduous task, but LIST WITH ELIZABETH® can help! There are lenders out there that want to work with you, no matter your situation. 

Also know that you don’t need perfect credit to buy a home, but if there are some blips and blemishes, you may see the benefit of raising your credit score before seeking a mortgage lender. But this doesn’t mean you have to wait a long time to start your home search. Even if you don’t see your credit score drastically improving over the next year, look into some things you can do in the short term to make yourself a more appealing financial investment to lenders, like paying down student loans, getting rid of your credit card debt, and refraining from any large purchases that increase your debt-to-income ratio.

Waiting on Your House Hunt Because… Timelines are Tight

If you’re the kind of person who likes to take your time and ruminate over your decisions, today’s housing market is undoubtedly frustrating for you. Houses are selling at breakneck speed, and there doesn’t seem to be as much time to make thoughtful decisions. But the right agent will understand your home buying style and work to get you into the right home for you and your family, no matter if you’re unable to make a decision fast enough to nab those homes selling like hotcakes.

The point is, if you put off the search and aren’t even looking, you don’t have a shot at nabbing the home you’ve always dreamed about. 

Waiting on Your House Hunt Because… Uncertainty About Everything 

But it’s not just finances and decisiveness that have many prospective homebuyers rethinking their timing. Uncertainty about other aspects of life — like whether remote work will continue or if they will need to find a commute to a new job — has everyone a little bit trepidatious to make long-term decisions. 

While single-family homes with yards were insanely popular over the last year, the unpredictability of things moving forward has many undecided on where they want to live or what they want out of a home. 

If you’re holding out for the right property, that’s understandable, but it’s still important to stay in touch with your real estate agent. LIST WITH ELIZABETH® can’t be ready to show you your perfect home as soon as it hits the market if we aren’t aware of what you’re looking for. 

Even in the uncertainty of the times, don’t put your house hunt on hold. Keep looking for the right property that’s sure to come — and have your financials ready to be able to put in an appealing offer, with mortgage pre-approval, quickly. The more prepared you are, the better your chances for success!