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June 12, 2017 | Posted in:

How to Land Your Dream Home in a Seller’s Market

The real estate market has certainly had its ups and downs since the late 2000’s. While Millennials continue to flock to cities to rent, aspiring homeowners are facing a limited inventory of available houses on the block with median prices on the rise.

 

But don’t let the real estate news reports scare you. By being proactive in your search and having the right team of an experienced realtor and a CPA to help with budgeting and tax implications, your next home can soon be within reach. Here are some suggestions to give you an edge on landing your dream home in the current seller’s market:

 

  1. Be Nimble, Be Flexible.
    Try to investigate new listings quickly – within hours of their first posting, if possible. Some of the online databases can send you email alert notifications for houses that have your desired criteria (especially the non-negotiable attributes). If you’re interested in a house but an inspection finds a few flaws, you may have to consider being flexible about accepting a house with a few quirks or in need of some repairs. Be wary about becoming emotionally involved until your offer is accepted and your inspection report is in the clear.

 

  1. Make a Strong Offer (But Know Your Limit).
    A seller’s market is not a time to lowball your first offer on a house you really want. If you’ve prepared and set your expectations below your minimum price range, you should be able to make a strong offer to ensure you are among the most attractive bidders. You shouldn’t wildly overpay, but making a strategic offer above the listing price may sweeten the deal enough to close quickly.

 

  1. Earnest Money.
    You may consider offering a meaningful earnest money component to your offer to show you are serious. Just understand that this money is put at risk if you later change your mind.

 

  1. Fewer Strings, the Better.
    Try to make your offer as simple as possible. The more contingencies, the more room for someone else to sneak in and snap up your target home with a less complex offer. Flexible move-in dates may also make your offer more attractive to the seller. Having to sell your home before buying theirs may create a snag versus another offer.

 

 
Address the Tax Implications of your New Home.

If you find your perfect new dwelling and are even more fortunate to have the seller accept your offer, it’s time to be aware of the tax facts that come into play when purchasing real estate. From property taxes to mortgage interest and whether or not to itemize deductions, it’s a good idea to refer to your CPA to address the tax issues and planning related to your new home. Keep reading about the tax impact of buying a home →

 

Best of luck on your search. There are many resources available to you to navigate the home-buying waters. Spend some time finding the resources that work best for you and your situation.

 

Contact us for guidance and application to your individual situation →

 
The information contained in this newsletter is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance. For more information or for assistance with any of your tax or business concerns, contact our office at 856.667.4100.

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