How to Prepare Yourself for Spring Market
Spring market can be a fun yet crazy time of the year for many prospective buyers. Often times, the Twin Cities’ hot spring market involves homes selling in 24 hours, multiple offer situations and/or putting in offers well over asking price. With this in mind, it’s imperative to be prepared for what’s in store so you can come out ahead with securing the house you’ve been dreaming of. Here are a few key tips to consider while preparing for house shopping during the spring:
- The first step is getting pre-approved with a reputable mortgage banker like Alerus before you start actively looking at homes. Having a good idea of the price point you’re approved for and comfortable with, what down payment you have readily available and the different loan products available to you not only allows you to be well-informed and confident while you’re out looking but also permits you to react quickly. You need a mortgage professional you can trust – giving you peace of mind about the accuracy of the information provided as well as the security of your pre-approval and closing on time with no surprises. Alerus has a strong reputation among real estate agents, appraisers, and title companies in the Twin Cities area and beyond – lending itself well in multiple offer situations when the terms of the offers are otherwise the same. We also work nights and weekends when you’re out looking at homes – allowing you to write offers as quickly as possible. Believe it or not, having Alerus on your side has secured many deals for our clients! With our unique $10,000 Alerus Guarantee (we’ll pay the seller $10,000 if the loan doesn’t close on time) and the fact we’ve never missed a closing in 25 years, shows the listing agent and sellers you mean business when you put an offer in with Alerus’ name on it.
- In addition to working with a dependable mortgage banker, you’ll also want to connect with an experienced Real Estate Professional who knows the Twin Cities market well. It’s their job to do the research for you, find homes that fit your interests and successfully secure the deal by writing good offers and working well with other agents. With a knowledgeable and flexible agent on your side, it should make the process of looking at homes fun and painless!
- Knowing what you’re pre-approved for (and comfortable with) provides you with a realistic stance when you’re ready to start shopping for homes. It’s also important to do some research on your own ahead of time and view homes online in your price range before you really start shopping. This gives you a good sense of what to expect in the market. It can be surprising how much location determines what kind of house you can get and what the property taxes are like in each part of the city.
- Be ready to pay your own closing costs, offer full asking price or even offer more than asking price. Be cognizant of multiple offer scenarios. In these situations, focus on determining the maximum amount you’d be willing to spend for the house rather than trying to guess what others will be offering. You don’t want to lose out on your dream home over a couple of thousand dollars. This is where a skilled real estate agent comes into play and can solicit sound advice when preparing to make an offer.
- Be ready to put down a bigger earnest money deposit than expected. This shows the seller you are serious about buying the home and gives them security knowing you likely won’t be backing out.
- If possible, be flexible on the closing date. Whether it’s a quick close (30 days) or the seller needs a little more time (60+ days), the seller will greatly appreciate your flexibility and may even base the acceptance of your offer on how quickly you can or cannot close.
- Focus on buying a home you can see yourself in for several years – even a house that gives you some room to grow. You never know what the future holds so it’s important to buy with the mindset you could stay there for a while if you wanted to or needed to.
- Consider writing a letter to the listing agent/sellers – telling them your story and why you love the house. This may create an emotional response which could be to your advantage in multiple offer scenarios. You may even consider adding a family picture. 🙂
Download our free app for your phone to help you quickly and easily calculate monthly mortgage payments when you’re on the go and looking at homes. Otherwise, feel free to call or text us if you have any pressing needs or questions. Happy home shopping!