If you plan on buying a home this summer, you need to be aware of what the market looks like. Home prices are still rising and for-sale homes are still in short supply. You’ll find, then, that a lot of buyers are competing for a limited number of homes at higher prices than previously. Still, this summer can be a great time to buy a home – you just need to know the strategies and tactics to get a good deal. So read on for our 5 tips to help you get a great deal on a New Jersey home this summer.
1. Get Pre-Approved Before Shopping
Before you do anything else with respect to buying a New Jersey home this summer, you should get pre-approved for a mortgage. Doing so will allow you to be perceived as a serious buyer and will give you more negotiating leverage.
“A mortgage pre-approval is a written statement from a lender affirming that you’ve qualified for a home loan based on a preliminary review of your credit report, income, debt, and financial accounts. Including a pre-approval letter when you submit an offer on a house shows the seller that you’re a serious and qualified buyer.”
Keep in mind that pre-approval is not the same thing as pre-qualification, which does not carry as much weight as pre-approval. Pre-qualification is based only on consumer-submitted data, but pre-approval involves verified data such as a credit check.
Pre-approval assures the seller that you can get financing for the home purchase – that you are, in fact, a serious buyer. A seller will view an offer made by a buyer with a pre-approval letter much more favorably.
2. Be the First or Last to Make an Offer
The timing of your offer can also help you get a great deal on a New Jersey home this summer. Typically, you want to be the very first or the last to make an offer.
“Oftentimes, it’s not the highest offer for a property that gets accepted, it’s simply the first. Therefore, if you are looking for a great deal, be quick about it! Get a pre-approval from a bank so you can jump at any property right away, and have your real estate agent set you up with automatic email alerts notifying you of any new property that hits the market.”
But if a home has been on the market for some time, you may be better off being the last buyer to make an offer. “Those owners are often far more willing to sell for a discount because they are tired of holding on to that property. Many times, they will have been making two mortgage payments for months (or years) and will entertain almost any offer.”
You can contact a New Jersey agent to find out how to best time your offer. To discover more, just call 855-966-DEALS.
3. Get a Better Deal With Extras
Getting a great deal on a New Jersey home this summer isn’t only about the sale price of the home. The extras the seller is willing to throw in also matter immensely.
With home sales, almost everything is negotiable. “From appliances, like refrigerators and dishwashers, to furniture and potted plants, sellers might be willing to part with some of their belongings to make the home sale more appealing for the asking price. Everyone should always try to negotiate for these types of things once it’s under contract.”
One of the most common of these extras is the home warranty. Such warranties (usually for one year) “ cover parts of the house that could go bad right after purchase, like the air conditioning or the . . . water heater. Although relatively inexpensive, warranties tend to make buyers feel more secure in their purchase.”
4. Consider a Foreclosed Property
Bank foreclosed properties can be great opportunities for anyone (especially investors) planning on buying a home this summer.
Whenever someone doesn’t make her mortgage payments for an extended period of time, the lender will step and repossess the home and remove the occupants. Then the lender will list the home for sale. And because lenders are not property managers, they usually want to sell the foreclosed home fast, often being willing to sell at a great price.
“While the foreclosure, in itself, is of course sad (no one rejoices when someone loses a home), once the deed has been done, these properties can be some of the best deals you’ll find in real estate. Banks want to be in the business of lending money, not managing property, so they are often quick to offer large discounts just to get the deal off their books. Translation: You can get a great deal on foreclosed properties.”
If you’re interested in looking into foreclosed properties, contact a New Jersey agent at 855-966-DEALS.
5. Work With an Experienced New Jersey Agent
Finally, one of the best things you can do to get a great deal on a New Jersey home this summer is to work with an experienced local agent. In today’s current seller’s market, “[h]omes are going under contract even before they go on the market . . . You need to have an agent who hears about listings before they go live.” That way, you can be the first to jump in and make an offer and possibly get a great deal. So if you’re planning on buying a home this summer, be sure to contact us today at 855-966-DEALS.