3 Tips To Give You A Leg Up In 2021
By Marie Shepherd | Realtor
The real estate market in Vermont in 2020 was absolutely insane, and we're expecting 2021 to get even more wild. Are you hoping to purchase a home in rural Vermont? Urban Vermont? The following 3 tips will give you a "leg up" against the competition when you decide to write an offer on your dream home this year.
1. Find An Agent
In this market with such low inventory, it's important that you're working with a realtor. As a buyer competing with limited inventory already, if you've got no agent, you'll be at a disadvantage competing against other buyers who do have an agent with knowledge and experience.
Often, agents are communicating with their teams and companies about listings that might be coming to the market soon, even before the public sees the "coming soon" advertisement. If your agent is able to let you know about a listing prior to it coming on the market, you'll be more prepared to move faster against the competition, and in some cases, the seller might be willing to sell to you without having the hassle of 72 showings in one weekend.
Additionally, having a buyer's agent on your side will ensure you have one person looking out for your best interests up front. Your buyer's agent will be responsive to you, ensuring one channel of communication. Would you prefer to call six different listing agents for six different homes that you're hoping to see this Saturday, or would you prefer to have your buyer's agent schedule all of the showings for you? Working with a buyer's agent limits the hard work that you have to do by keeping track of all the agent's phone numbers and times of each showing.
Additionally, often times, the listing agent is answering calls and texts from tens of agents already and it is likely easier for the listing agent to work with a buyer's agent representing you than to work with you directly. The listing agent has an established relationship with many buyers agents and may be more responsive to allow a buyer with an agent into their listing first.
Your buyer's agent will guide you through the process from showings to writing offers and from acceptance of the contract all through closing. Agents ensure to the best of their ability that you won't miss any deadlines and possibly lose out on your contract deposit.
2. Know What You Want
Before you begin looking seriously, it's important to know what you need in your new home. Are you able to afford living in a condo association with a special assessment to cover roofing and driveway repairs? Do you need a condo association that allows pets? Are you willing to live on 10 acres with no neighbors for miles around? Do you want a bonus room or den for your home office?
It's crucial that you make a list for your agent of needs and wants before you begin looking. Your agent is looking at homes and networking with other agents for hours each day. It's likely that your agent will find many home options for you in no-time! However, if you need your new home to be set back off the road, or want to have a fenced-in back yard, your agent will only send you the homes that meet the criteria that you discuss.
When you're looking for a home with a partner or a family, or when your parents are involved in your purchase, it's important to set expectations up front. Before looking at homes in person with your agent, talk with your spouse, family and/or parents to determine what your needs are compared to what your wants list consists of.
3. Get Pre-Approved
A preapproval is not a prequalification. In the tight, low inventory, hot market that we're experiencing in Vermont, it's important to have a preapproval and not a prequalification.
What's the difference?
The preapproval is a step up, above the prequalification. The approval is a thorough investigation from the mortgage lender looking at your income, assets, credit, rental/homeownership history and debt. The approval offers a concrete idea of how much home you are able to afford according to your lender. Obtaining a mortgage approval verifies your employment and ensures you aren't over your head in debt.
Sometimes, the lender will approve you for more than you're willing to spend. In this instance, it's important to review your loan estimate from the lender and ask for a preapproval price in the range you're comfortable spending.
Are you curious about lending in Vermont? Check out these local Vermont Mortgage Lenders:
New England Federal Credit Union
Union Bank
Vermont Mortgage Company
Draper and Kramer Mortgage
Academy Mortgage
Movement Mortgage
Vermont Federal Credit Union
Opportunities Credit Union
Every lender offers a variety of packages and services, stay tuned for another blog post that highlights some of Vermont's great home-buying programs!
Want to reach out?
Phone: 802-393-4564
Email: Marie@themalleygroup.com