If I was to look back at 2021 and come up with what gave most prospective homeowners the edge they need to close a deal on a home I would give you these ideas.

1. Competitive Offers Close Deals

Just like 2021, 2022’s low inventory and high demand makes for a very competitive market. Most of the buyers last year put in multiple offers to get under contract on a home.

A competitive offer isn’t just the highest offer. Sure, money talks, and you’re more likely to be successful if you can outbid the competition. But there are other ways to make your offer stand out.

• Make the transaction look as easy as possible by keeping it simple and convenient for the seller.
• Demonstrate to purchase their home with a preapproval from a reputable lender that is known in your marketplace.
• Quick closing at less than 30 days and let the seller choose the date.
• Offer to buy the home as-is after it’s professionally inspected.
• Your real estate agent makes a big difference and can help you write an offer that gets moved to the top of the pile, without putting you at undue risk.

2. Plan B

The greater the demand, the more flexible potential buyers will need to be.  Just remember that your first home is not your last home in most cases.

There’s a fine line between wants and needs, so make sure you have your needs clearly defined.  The more features you can compromise on, the more likely you are to end up with a home of your own.

3. Buying in 2022 Will Still Be Tough

We had a lot of buyers that were unsuccessful in 2021 role into 2022 thinking it would be easier this year. But the supply-demand forces that made homebuying a challenge in 2021 will continue in 2022. The shortage of homes on the market isn’t likely to experience a dramatic change.

Realistic expectations can insulate you from disappointment and help you build contingency plans for when you find yourself battling it out with other potential buyers.

4. Interest Rates and Current Home Prices Could be Budget Busters

Last year successful buyers say they walked away from several homes they liked because they couldn’t afford the homes or it stretched their budget beyond their comfort level.

Interest rates are on the move up and a 1% increase in rate reduces your buying power by 11%, so stick to your budget but be aware of the challenge this brings in addition to the supply issue.

Understand your numbers and home affordability meeting with me can get you started in the right direction.  Schedule a phone or Zoom call with him that is convenient for you.  Click here to set it up.

5. Borrowing For a Home Isn’t a Sure Thing

Don’t automatically assume you will be denied and not apply.  Qualifying for a mortgage is all about credit, income and assets.  You can learn all about the process of buying a home by attending one of our classes, so come join us.  If you have questions you want to get out of the way before applying use the link above to set a meeting with me and we can do it over the phone or Zoom in less than 30 minutes.

Yes, there are guidelines for lenders and I can easily explain them to you so you have a path to travel down in order to purchase a home.

There are programs available for first-time buyers that can make it somewhat easier to qualify for a home loan, and even ones with down payment assistance.

Home buying and financing information, reach out to Curt Tiedeman, License NMLS 35554, Caliber Home Loans, 206.650.4202, curt.tiedeman@caliberhomeloans.com