Dear Olivia,
I’d like to buy my first home, but I’m scared of the high interest rates. What advice would you give me as I contemplate making this decision?
Sincerely,
Ready to Own
Firstly, while interest rates are much higher today than they were a few years ago, there are still good deals to be had, especially here in Fremont County. Our inventory has been pretty tight lately, meaning there have been fewer homes available than historical averages. But, with the right Realtor helping you and a mindset that a home is a long-term investment, you can find the home for you!
Here are a few specific pieces of advice to consider…
Choose a Realtor With Extensive Knowledge and Experience
We have so many excellent Realtors in our area, which is great news for you! An experienced Realtor with intimate knowledge of the Fremont County real estate market will be able to find properties that meet (or closely meet) your criteria. They can help you navigate the sometimes confusing processes involved in buying a home, too, including:
- Finding appropriate financing
- Helping guide you through the process of making an offer
- Negotiating on your behalf to get you the best deal
- Arranging inspections, appraisals, and so forth
- Working with you to prepare for closing
So, really, Realtors are there to help you through the process from the moment you decide to hire someone until the moment you have the keys to your new home in your hand. It’s a unique relationship, and one that we hope continues into the future when you decide to sell your first home and move to a new one!
Stick to Your Budget
You might not get to control the interest rate you pay, but you can certainly control how much money you spend on your first home. First of all, have a look at your finances and figure out how much house you can afford. You can work with a Realtor to help you through this step, if necessary.
Second, establish a price range that fits your budget. After all, there’s no sense in looking at homes that cost $250,000 if your overall budget is $175,000! Resist the urge to move your price up, either. The term “house poor” is not something you want to use to describe yourself!
Third, your Realtor will negotiate on your behalf to get you the best price. Though it’s always important to submit a strong offer, a strong offer doesn’t necessarily have to be full asking price. In fact, in April of this year, price reductions on homes for sale were up 15.5 percent. That means sellers are willing to drop their price if it means sealing the deal!
Don’t Be Afraid of a Fixer-Upper
We’ve had quite a few fixer-uppers come on the market recently. Usually, these homes are purchased by investors. But that doesn’t mean you can’t explore the idea of buying the worst house on the block and turning it into the best one!
Don’t get me wrong – fixer-uppers are a lot of work. If you’re up to the task and have some home improvement skills, you can build significant equity that helps improve your long-term financial situation. The old adage applies, though – real estate is all about location. A fixer-upper on a nice street will support a higher price when you’re done than a fixer-upper in a not-so-great part of town.
Ultimately, you also get to decide if you even buy a home or not. It doesn’t cost you anything to consult with a Realtor, so get in touch with me or your preferred real estate agent to see what the local market looks like for you!
As always, please don’t hesitate to reach out to me with additional questions at 307-856-3999!
~Olivia