Spring. The time of year when tulips, daffodils and cherry blossoms bloom (even if they are delayed)...and when homebuyers are ready to move! While market activity picks up across the country with the warming weather, it also means more competition - which can be a problem when there are inventory shortages.
According to Bright MLS, the Washington market has seen declines in year-over-year inventory for nine months (as of January 2017). This is great news for sellers, but it can lead to greater frustrations for buyers - especially first-time homebuyers who have not yet experienced the process. Of course, this doesn't mean you should throw your hands up in the air and stay put in a less-than-ideal home. Here are five tips to help put you in a better position to land your dream home in the DC area:
1. Enlist the help of a Realtor® now. Finding the perfect home is a stressful process for any buyer, so add a licensed real estate agent to your team. They'll shepherd you through the process, put your interests first and allow you to focus more on all the joys of homebuying and, eventually, homeownership. Even if you're not sure if now is the right time to buy, having an agent on your side can help you make that determination and be ready when your dream home hits the market.
2. Spring clean...your credit! If you haven't already, take a close look at your credit and take steps to bolster your credit score and increase your ability to get approved for a mortgage at the most favorable rates. This may mean reducing existing credit card debt and paying extra close attention to avoid late payments on any bills (more tips from MyFICO.com).
3. Have your list of must-haves and nice-to-haves, but be open. Most of us have pictured our ideal home for years but they almost always are out of reach. The homebuying process is rooted in trade-offs but talk to your real estate agent about options you may not have considered, such as a fixer upper (and a 203k loan), alternate neighborhoods and properties with income potential (such as a basement unit you can rent out).
4. Be the early bird and catch the worm. In a market with low inventory, preparation and timing is key. In addition to being pre-qualified or pre-approved for a mortgage, take advantage of your Realtor®'s access to information not yet available through the many online real estate search portals. Agents - through relationships and their tools - often know about inventory three weeks or more before it hits the market (allowing you to see properties first and, if it's a fit, make an offer).
5. Choose an agent who knows your target neighborhood(s). DC and its neighborhoods are unique and diverse (part of what makes our region so great), so find an agent who knows (or, better yet, lives in) the neighborhoods you are honing in on. Google and public records can only tell you so much, so tap into the knowledge and expertise of your agent.
Here's wishing you luck on your homebuying journey this spring. If you are looking in DC area - and especially if you are interested in Petworth, Columbia Heights and Brightwood - I'd love to meet you and discuss your needs.