4 Tips for First-Time Homebuyers

These four tips can help first-time home buyers purchase their home at the best price and rate possible.

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Today, I have some tips to help first-time homebuyers purchase a home. 

1. Find a great real estate consultant. The way I differentiate between a real estate consultant and an agent is that a consultant will sit down with you and identify your needs and what you’re looking for. An agent, in my mind, is more reactionary; they’ll show you the houses that you ask to see.
2. Dig into the market conditions. There are many different markets throughout the country. Here in Birmingham, we’re in a low inventory market and interest rates are spiking. The differences between markets will affect the price of the home you’re trying to buy. A great consultant will help you navigate the market conditions and structure the best deal for your situation.
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First-time homebuyers have many different options in today’s market.


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3. Work to make sure you’re fully pre-approved. This will require working with a lender. Sit down with them and let them coach you through the various financing options that are available in this rising interest rate climate in order to reduce your payment. It could be an interest rate buydown, negotiating with the seller to have them pay closing costs, or possibly having the lender pay some closing costs.
4. Look at homes that need renovations. Work with your agent and lender to do a 203(k) renovation loan and renovate a house.

First-time homebuyers have many different options in today’s market. Discuss these with your consultant to get the best deal at the best price with the best terms for you and your family’s goals. 

If you have any questions, please feel free to contact us. We’d be glad to help you any way we can.

Is Now the Right Time to Buy in Our Market?

Interest rates are on the rise in our market, so if you’re a homebuyer, you should definitely consider buying sooner rather than later.

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How are market conditions and interest rates affecting homebuyers out there?

We’ve talked to a lot of people contemplating buying a home lately, and one of the common trends we’re seeing from homebuyers is wanting to wait 90 or 120 days before entering the market. If you feel the same way, you might want to reevaluate that strategy with a real estate consultant. In the last four months, we’ve seen interest rates go from 4.09% to 4.38%, and all indications are that they will continue to rise over the next 90 days. 

Experts at the FMOC expect interest rates to be raised three times in 2018. Historically, interest rates have risen entering the spring markets even without the conditions we’re experiencing right now. Home prices tend to rise as well through this season. 

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In the last four months, we’ve seen interest rates go from 4.09% to 4.38%.

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This is why, if you’re thinking about buying a home, meet with a real estate consultant, review your goals, and think about whether now is the time to dive into the market. If you meet with us, we can perhaps create a strategy to purchase a home later in the year all while accomplishing the same goals. 

If you’re on the fence, we’d love to give you a free consultation and examine the effects of waiting to enter the market. If you like to sit down with us or you have any other questions about our market, don’t hesitate to reach out to us. We look forward to hearing from you.

What to Expect From the 2018 Real Estate Market

How is the Birmingham real estate market? I’ll go over market conditions and what to expect from the 2018 market today.

Selling your Birmingham home? Get a free home value report

Buying a Birmingham home? Search all homes for sale

Let’s take a look at the state of the market and what those market conditions mean for real estate in 2018.

Inventory reflects the number of homes on the market. Here are the inventory levels for December 31 over the course of the last five years: 

• 2013 - 7,439 homes
• 2014 - 6,568 homes
• 2015 - 6,677 homes
• 2016 - 6,190 homes
• 2017 - 5,304 homes

As you can see, inventory dropped significantly from December 31, 2016, to December 31, 2017. That means there has been a significant drop in the number of homes available for sale. 

If you are a seller, now may be a good time to put your home on the market. Homes are selling quickly if they are priced and positioned properly in the market.

Of those 5,304 homes, 1,000 of them are under contract in some form or fashion. 

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Now is a great time to enter the market as a buyer or a seller.

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Another major factor in the real estate market is mortgage rates. Interest rates continue to skyrocket. As rates go up, your buying power goes down. Rates have gone up three-eighths of a point over the last 20 days, which would significantly impact your mortgage payment and your buying power in the real estate market. Check out this attachment for more.

If you are a seller, that means that your buyer pool may be dwindling.

That said, now is a great time to enter the real estate market as a buyer or a seller. If you have any questions, just give us a call or send us an email. We would be happy to help you!