If you live in the Seattle area and you want to buy a home in the near future, you’re going to buy in a hot market. But don’t let the competition get the best of you. Avoid these mistakes to keep from over extending yourself or regretting your purchase.
In the current Seattle area real estate market, homes are bought almost as quickly as they’re listed. With inventory as low as it is, it’s hard not to be discouraged. Don’t let this cause you to make desperate and impulsive decisions. When you’re dealing with a purchase as big as a new home, you want to remain as level headed and objective as possible.
Desperate and impulsive decisions are the quickest way to make a mistake.
If you see a home you want, don’t ho-hum over your offer. Submit it that day. Other buyers aren’t going to wait for you to take action. They’ll simply beat you to the punch. In a hot market, the early bird nearly always gets the worm.
Money is not something to mess around with. Don’t ‘guesstimate’ your budget. If you do, it’s easy to come up short. Rather, take a very exacting look at your income and monthly bills to get a realistic view of how much you can afford to spend on a home.
It’s important to also keep in mind the cost of owning a home is more than simply your monthly mortgage payment. Your gas, electric, and water bills will likely go up. You’ll need cash to cover any maintenance and repairs your new home requires. You may be required to pay homeowners’ association dues monthly or annually.
In hot markets, bidding wars are fairly common. Like gambling, it’s easy to get caught up in the frenzy. Unfortunately, this can cause you to spend more than you’d planned. If you do decide to increase your offer, make sure to stay within your budget. Also, look at the sale price for comparable homes in the area to make sure you’re not overpaying.
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