How to buy a home during a housing shortage

How to buy a home during a housing shortage

It’s no secret that the United States is experiencing a housing shortage. Since 2020, demand for homes has reached a fever pitch. The trifecta of low inventory, all cash buyers, and rising interest rates are making it harder for everyday Americans to buy homes. “The affordable housing crisis, at its core, means there’s just not enough housing to keep pace with demand,” says Pete Carroll, executive of public policy at property data leader CoreLogic.

Here are some tips we have come up with to help you be as prepared as possible for the housing market.

Be Realistic

Before you buy a house, you should first narrow down geographically where you really want to live. Don't forget to prioritize what you most want in a home.  You very rarely will get it all.

If you want to buy a home, you have to be realistic about home prices and not look for the impossible. You will need to be dedicated to the search and be persistent when you are buying a home right now. You should try to find a house that is in good condition and fairly priced. 

Try to avoid houses that have a lot of problems. These are the ones that are in bad shape and need a lot of expensive repairs. They might cost less now, but they will cost you more in the long run. Currently, construction supplies and labor are very expensive. If you can afford to fix it up, or perhaps have the skills to fix it up yourself, then this may not be such an issue for you. Otherwise, stick to homes that do not require major overhauls. 

Where to Start

The first step to buying a home is to get pre-approved for a mortgage. This means that you’ve already secured a lender like us who’s willing to lend you money. 

Next, find a good real estate agent. 

It is very important to find a good real estate agent. A good real estate agent can help you to find the right home and negotiate the best terms. You should also look for a real estate agent that you can trust. Make sure that he or she is honest, reliable, and has a lot of experience. Think carefully before making your purchase. You want to find the right home at the right price. 

Work with your agent to make the best offer possible. Be prepared to not win the first house that you bid on. It may take a couple of tries. Be patient the home of your dreams is out there you just need to find it. 

To get pre-approved fill out the Purchase Request, and A+ Home Loans will determine the maximum you qualify for.  We can also provide you with a list of excellent area Realtors to interview.