ABC News — The housing market is red hot, and prospective buyers are trying not to get burned as demand soars, and supply is limited.
ABC News reports the spike is a result of the pandemic. As more people work from home, mortgage rates drop and millions of millennials now enter their home-buying years. But it makes it that much harder to win the housing bidding war.
Still, “Million Dollar Listing” agent Tracy Tutor says despite the competition, now is the best time to buy a new home.
Tutor said, “Because interest rates are so historically low, know what you’re getting into and make sure you secure that interest rate now because you will not find it again.”
A secret tip for buyers? Use an escalation clause.
Tutor said, “In an escalation clause, you can say ‘my buyer is willing to pay 5,000 more than the highest offer you have’, and then you can cap that.”
And most importantly? Find out what the seller really wants.
“Every seller has different needs and wants and desires,” Tutor added. “Make sure that your broker is reaching out to the listing broker and asking them, the types of terms that their seller is actually looking for. You’ll be surprised that can kind of put it over the edge, all other things considered equal?”
The same goes for refinancing; rates are still very low. If you choose not to buy or sell during this time, you may find a refinance that can save you a lot of money.