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6 Tips for Buying an Affordable Home in the Current Hot Market – GOBankingRates

Group4 Studio / Getty Images …….

Group4 Studio / Getty Images

The COVID-19 pandemic created a housing market frenzy that’s still going strong in 2022. You plan to brave the chaos and attempt to buy a home this year, but you know it probably won’t be easy.

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There is some good news — the median home sales price is expected to rise 2.9% in 2022, which is much slower than the 12% realized in 2021, according to Inventory is also expected to increase by an average of 0.3%, marking a notable change from the negative 18% experienced in 2021.

Ready to start your search? Here’s some advice to help you stay calm, competitive and focused throughout the buying process.

1. Get Preapproved Before House Hunting

When starting to look for a home, one of the first things you should do is get preapproved for a mortgage, said Bill Gassett, a realtor with Maximum Real Estate Exposure, based in Hopkinton, Massachusetts. 

“The preapproval process will give any seller confidence that you will be able to complete the purchase and allow you to know your budget,” he said.

Additionally, he recommended checking your credit score to make sure there aren’t any errors.

“A credit reporting error can significantly impact your score,” he said. “It could mean the difference between getting a more favorable interest rate.”

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2. Shop Below Your Budget

In theory, it makes sense to search for homes listed in your price range, but that isn’t the best strategy in a competitive market.

Glen Pizzolorusso, a licensed associate real estate broker with Compass in Fairfield County, Connecticut, recommended shopping 20% under your preapproval amount.

“Most properties will sell for over the list price, so you want have buying power when you go to make an offer,” he said.

3. Don’t Dawdle on Your Dream Home

Buying a home is quite likely the largest purchase you’ll ever make, so wanting to think long and hard about it makes sense. However, you can’t ponder it too long in this market.

In 2020, homes across the U.S. were on the market for an average of 25 days, according to Zillow. However, some cities had much faster sell times, including Columbus, Ohio, at eight days and Denver at nine days.

While you shouldn’t wait to put an offer on a house, seeking out properties that have been sitting on the …….


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