Real Estate Market is Smoking Hot - @GalTime

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Real Estate Market is Smoking Hot

Published: 09/202013

From coast to coast the real estate market is smoking hot. If there was ever a sellers' market the time is now. In stats just released, the National Association of Realtors® says, “Existing-home sales increased in August and reached the highest level in six-and-a-half years, while the median price shows nine consecutive months of double-digit year-over-year increases.”

Buyers say it’s nuts. First time homeowner Lisa Bacon got into massive bidding wars on every place she put an offer. “I bid on about 5 places. Every single offer went in at asking price and there were always 3-5 offers that were anywhere from $10,000 to $30,000 over the asking price. One was an all cash offer.”

Bacon finally scored in Watertown, MA. “The place I ended up getting I went on a Friday afternoon to see it. They were having an open house Saturday and Sunday. I put in my bid at on Friday at 5K over. They came back and said if I would offer another $5000, so $10,000 in total over asking price, they would sign and cancel their open house. That's how it happened.”

San Francisco interior designer Penelope Robinson says the West Coast market is beyond rebounding! She just staged two homes in the area for sale and homes are selling in less than a week’s time. “Multiple offers at way in the $50 - $100K over asking range for condos. All cash offers are becoming normal.”

When Chrissy Hykel sold her condo in Charlestown, MA it was a seller’s dream.

“I had three offers after the first open house. One of the offers had an escalation clause in it for up to 16k over the listing price, which is what it ultimately went for.”

If you’re looking to buy, how do you compete in this crazy market? John Mallet, owner of Mainstreet Mortgage , says remember, “Your home buying team is you, your mortgage professional and your realtor.”

Mallet has five things you should do before you even start looking for a new home:

1. Your first step is finding a competent mortgage professional to be your trusted guide through the entire home buying process. “Problems with financing are the most stressful part of the process and where things can fall apart quickly.”

2. Determine your home price target range and financing options. Your mortgage professional will use your credit score, your income, your assets and your debt to estimate the loan amount you qualify for and the likely financing terms. “And ask if it would be wise to take 3-6 months to actively improve your credit score or grow your down payment fund so you can get better loan terms.”

3. Ask your mortgage professional to generate a your loan pre-approval letter. “Without that letter, no realtor or home seller will take you seriously.”

4. Create a budget. Plug in your estimated mortgage payment to see if you’re in over your head, won’t have the cash flow to support your lifestyle, or your down payment leaves no reserves to cover a financial setback. “Most people don’t realize that lenders may qualify them for a loan they can’t afford, and then they wind up losing everything.”

5. Your home buying strategy should be part of a long range plan to achieve financial security. “Your mortgage professional can help you select the financing option that sets you on a path to finanical security. Don’t play the game of getting the lowest interest rate, because that rate can carry baggage that weighs you down over the long term.”

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