Hey Millennials! Did you happen to see my post the other week about investing in real estate at a young age?
According to economists, Generation Y is finally staring to take the leap into home ownership. What’s been the delay? Millennials prefer to rent and in the past have struggled coming up with the cash for a downpayment.
Millennials “are predicted to keep home and condo sales strong well in to 2020.” A strong showing from this group is expected to prop up the real estate market in 2017. For more information, read the article from Realty Times here.
The DC housing market can be intimidating for anyone, especially a young first time buyer. Here are a few things to keep in mind when entering into a competitive market.
Get yourself pre-approved by a mortgage lender.
Having a pre-approval letter to submit with your offer shows the seller that you are serious about buying their home. It also shows that you have the funds to close and it can help set you apart from the competition.
Do your research and make sure your pre-approval letter comes from a reputable lender.
Come in with your best offer.
Hire a real estate agent that knows the market and will help you come up with your best and most competitive offer.
Prepare yourself for multiple offer situations.
A multiple offer situation can sometimes put a lot of stress on a homebuyer. As stated above, know the market and use a knowledgeable real estate agent to help you come up with your best and most competitive offer. Become familiar with escalation clauses and decide if this is something you’d like to consider adding to your contract.
Know your closing costs.
In a competitive market, buyers typically are not not able to ask for seller assistance with closing costs. Make sure you have an understanding of how much cash you need for closing.
Be prepared for unexpected expenses.
Appraisal fees, taxes, home owners insurance, and moving expenses are just a few of the unexpected costs buyers should be prepared for.