Hooray! Another closing for clients who are first time homebuyers. Being able to help someone who is making such a big decision for the first time is a huge joy of ours. And, we are proud to say that even in a very competitive market for buyers, we were able to find these first time homebuyers a great house in a fantastic location in Newport, KY.
Evan and Sarah reached out to us a few months ago. They were renting and decided it was time to buy a home because they wanted to start a family. Love it! But, everything was new to them, so we walked them through the home buying process and what they could expect.
The first step was getting pre-approved. They worked with our trusted ally, Matt Pfleger at NRL, who walked them through the financing process and helped them understand what they could afford. Once we had a pre-approval letter in hand, it was time to go shopping!
For first time homebuyers, this real estate market is a real challenge! And, you have a lot of questions to ask. Yes, it’s true that interest rates are low, so you can more home than when rates are higher. However, the negative to low rates is that there are more buyers fighting for the same houses. When you combine that with historically low housing inventory in the Cincinnati area, you get a strong sellers market. This means that because of simply supply and demand, housing prices go up. Low housing supply + High buyer demand = Prices go UP!
Knowing that as an agent, it is then important to communicate to your buyer clients that finding homes that are listed at the top of your price range is probably not what you need to look for. Instead, you want to target homes that are under you budget, so that in a competitive buying situation, you are able to bid over asking price if needed. These are the kind of strategies and experience real estate agent should help you with. When you add a competitive offer, plus good communication and asking if the seller has any other terms that are important to them, you are not only communicating to the seller, but also the listing AGENT as to who they might want to work with on the deal.
With Evan and Sarah, we had one home they liked where we offered over asking price, but came up a few thousand dollars short from the winning offer. We kept our heads up and kept looking. We found a few homes with foundations that were not great, and while my first time homebuyers loved the home and the price, I cautioned them to heavy expenses they might face down the road with a home that is leaning.
But, finally, we found a gem in Newport, KY! The home had been on the market a little longer than the average and the seller was motivated. We made an offer lower than what we thought would be accepted, but sure enough, she did! Evan and Sarah were able to score a home in the hot and appreciating east side of Newport, KY. It’s a great fit for them, and even in a competitive buyers market, they were able to get a great value on a home that should continue to appreciate over the years.
On top of it being a difficult market for buyers, there was also that one little thing …. a worldwide pandemic going on. So, Evan and Sarah found themselves closing outdoors in a parking garage, wearing masks and socially distancing. I asked them if when they imagined buying a house, if they ever thought it would be under circumstances. “Only in 2020”, said Evan. True statement. What a crazy year. … Happy to help you find your home in all of the craziness!