A continued record low housing inventory coupled with increasing home prices and historically low mortgage rates made for a very hectic buying atmosphere in 2021. Millions of buyers across the country saw themselves fighting tooth and nail to close on home offers throughout the year. But there were many homebuyers that were unsuccessful in their attempts to purchase a home in 2021.
2021 the housing market was booming in ways unforeseen before. But that did not mean that buying a house was necessarily easy. Data has shown that about 66% of those who started the home buying process in 2021 with the intention to finalize and on purchase were unsuccessful.
But this is not all bad news as many of these failed attempts have taught buyers some new lessons and insight to help them become successful in a home purchase as they move forward and it can help you as well if you were planning to purchase a home in 2022.
Here are some homebuying insights from unsuccessful buyers that could help you get a leg up on the competition when buying a home in 2022
Competitive offers close deals
The low inventory with the high demand from a large number of interested buyers drives a highly competitive market and it is not expected to completely slow down in 2022. About ¼ of American homebuyers who tried to purchase a home but were unsuccessful say that they made an offer on at least one home that did not go into contract.
Making a competitive offer does not mean outbidding other buyers and making the highest offer. Yes, more money can be intriguing to a seller, but the most successful offers are the ones that can guarantee they will go through and catch a seller’s eye in other ways.
Just because an offer is high does not necessarily mean that it is a reliable one that will be successful and go through. Sellers with trustworthy real estate agents on their side have this brought to their attention by their agent. You want to make the transaction look like it will go over as easily as possible and not have any risk of falling through or being drawn out due to lender protest or any other surprise. Often it is the most reliable and strong of offers that wins the war.
Related: How to Avoid Buyer's Remorse
Homes available for sale may not be your perfect dream home
The lesser number of homes for sale means that buyers need to be more flexible in their expectations of what they want to purchase.
A large number of buyers seeking homes in 2021 that did not purchase a home said they held off their plans because they could not find a home that they truly love or that met their needs. There is a high chance that the line between want and need will be much greater with a lesser number of homes available for sale.
Before you begin your shopping make sure that you write down what exactly it is you need from a home and what it is that would be nice to have in a home. Be willing to be flexible with making sure you are purchasing a home that meets all of your needs and doesn’t expect to find a home that is going to have all of your wants coupled with those needs.
Expect you’re buying process to be a little bit longer
Some of those that held off on the actual purchase of a home last year said they did so because they expect the real estate market to be a little less competitive in 2022. Unfortunately, the current real estate data shows that homebuying challenges are expected to continue for some time.
This does not mean that you should give up on purchasing a home right now as it is expected that a few more homes will hit the market in the spring of 2022. It is also a good idea to take advantage of mortgage rates while they remain historically low. They have risen just a little but they are still well below what they were just a few years ago. With the right patient mindset and an expert agent on your side, it may take a few different homes that you put an offer in on before yours is accepted, but you can find a home that you love.
Having realistic expectations and a knowledge of what is going on in the market currently paired with a patient and flexible mindset and having the reassurance of an expert agent on your side will make all the difference.
Mortgage approval is not a guaranteed thing
Though mortgage rates are very low and lenders are beginning to relax their qualifying requirements just a little bit to help more buyers be able to achieve their dreams of ownership it is not guaranteed that you will easily obtain mortgage approval.
Research shows that about 16% of last year’s buyers were unsuccessful due to the fact that they could not obtain a mortgage. But it is also said that a majority of these borrowers did not take the simple steps of preparing for approval.
It is a good idea to make sure that you have all of your financial ducks in a row before going shopping for a home. This is one of the best ways to combat disappointment and heartache. Making sure that you seek preapproval before the shopping process is one of the best ways to ensure that you will be able to finance a home purchase especially right now.
For more information on purchasing a home in Apalachicola and surrounding real estate on the Forgotten Coast, please contact us anytime.