Over the next couple of years, a large portion of Millenials turns 30. That's prime-time for home buying. Buyers in the Lake Havasu real estate market right now face fierce competition from others due to high buyer demand and low inventory. As a first-time homebuyer, you'll need all the help you can get. Follow my first-time homebuyer tips below so that you can get a leg up on the competition for your dream home.
First-Time Homebuyer Tips
Hiring the Right REALTOR@
Nothing beats experience. As a first-time homebuyer, you lack the experience necessary to make a great deal happen. You need to harness the knowledge of a professional Lake Havasu REALTOR@. Interview several to find the right fit. It make take several interviews before you locate someone you feel most comfortable with.
Beef Up Your Down Payment
The next one of my first-time homebuyer tips you need to consider is beefing up your down payment. Sure, 3.5% might get you the FHA loan you're after, but, you're competing against older buyers that might have a nice chunk of equity from a previous sale to work with. Some even come in with a full cash offer. That can be hard to beat. But, if you show a larger down payment (like 10-20% for example), it shows the seller how serious you are about purchasing that Lake Havasu home. And, believe it or not, many sellers look at the terms behind the offer...not just the dollar figure. Deposit your tax refund into your down payment savings account. And don't forget about the Home Plus Mortgage Program for down payment assistance.
You definitely need to be flexible when it comes to buying a home. Ideally, a 30-day close would make you happy. However, the seller may need some time to find another home. Or, you might prefer a 60-day close and the seller wants to move out within 30. Don't restrict yourself. Be ready to compromise whenever possible. Then, make other arrangements to fit the seller's timeline. If this is really the Havasu home for you, it's worth the temporary inconvenience.
Worst House + Best Neighborhood = Real Estate Gold
They say that the best real estate investment is taking the worst house in the best neighborhood and making it your dream home. Cosmetic changes, room additions, and even tearing down interior walls are things that can be done to just about any home. But, the location stays the same regardless. Sweat does build equity. Buying low in a great neighborhood means your home's value will just be that much more once you finish repairs and renovations. However, before you buy a "fixer-upper", calculate the real costs it would take to make it right. Then, add that to the asking price. Finally, compare the total to the value of other homes in the neighborhood. If the numbers work and you're willing to put in the effort needed, it could be a good buy for you.
Buying a home can be stressful, especially if you've never done it before. Limit the stress by following these helpful first-time homebuyer tips. You'll be moving into your new home before you know it!