In spite of the pandemic, the rising numbers of Covid-19 cases, and the election turmoil, the Dayton OH real estate market remains strong. The uncertainty surrounding the election caused mortgage rates to drop even lower attracting more buyers to the housing market. Prospective home buyers are also highly motivated to look for more spacious households anticipating the possibility of another stay-at-home order.
Real Estate Mortgage Update
In the last several weeks mortgage rates have dropped to their lowest levels by historical standards. The average rate on 30-year fixed rate mortgage dropped to 2.71% for the week ending Nov. 13th. The week prior to that the rate was 2.78%, and it was 3.69% the same week a year ago. Other types of mortgages such as the 15-year fixed mortgage, FHA loans and jumbo mortgages has also dropped to their lowest levels yet.
Home buyers are not the only ones taking advantage of these attractive rates. The number of mortgage applicants to refinance a home loan has increased by 80% from a year ago. Even homeowners who refinanced in the last two years are drawn to the market hoping for a better rate. On the other hand, the volume of mortgage applications to buy a home was 26% higher in the past weeks comparing to November 2019.
According to the latest data, houses across the nation sold faster in October than in September as prices remain high. Home buyers everywhere engage in bidding wars and the Dayton OH real estate market is no exception. The inventory in the area is hovering around 1500 homes for sale which is still very low. Most home sellers receive multiple offers in record time and sell their home over the initial, asking price. For most buyers finding a house of their dreams is only the beginning of their home buying journey.
How to Navigate Dayton OH Real Estate Market in 2020
First of all, home buyers should not get discouraged by the terms such as “seller’s market” and “bidding wars”. If you’re working with an agent who is an excellent negotiator he or she will do “the hard part” for you. Below we present you with some of the best tips and strategies which help buyers score the house they want.
Just Do It Already
If you’re thinking about buying a home in the Dayton OH real estate market you need to start acting as soon as possible. The inventory is low and the market is hot. Begin with a thorough research online learning about neighborhoods, schools and other places of interest. Additionally, take care of your finances ahead of time and make sure you are pre-approved for a mortgage and have sufficient funds for a down payment. A local exclusive buyer agent can provide you with any information you request including property reports, disclosures and offer due dates. If you wish to find out more about our exclusive buyer agency services give us a call today at (937) 433-6838 or send us an email. We’d love to hear from you!
Make Your Best Offer First
In a seller’s market you need to assume the owner of the house you want may have received several different offers already. Moreover, if a seller received multiple offers he or she will just pick one and there will be no time for counter offers. Therefore, it is crucial for a prospective home buyer to make their best offer first and deliver it quickly. To get an idea of how much you should offer take a look at how much you were pre-approved for and consider it the maximum amount you’re willing to pay. Keep in mind you may need to engage in bidding anyway so you should have some extra funds set aside as well.
If you want to know exactly what your monthly house payment will be if you choose a particular house use our mortgage calculator.
One of the best ways to show a seller you are a serious buyer with a solid contract is offering a large amount of cash as an earnest money deposit. A higher than normal amount of upfront cash will certainly make your offer stand out.
Additionally, if your heart is set on a property in a very competitive market you should make sure your offer includes the least amount of contingencies. Contingencies benefit buyers giving them a way to back out of the transaction if certain conditions are not met. Sellers don’t like contingencies because they have the potential to ruin the whole deal. It happens quite often when a seller chooses the offer with fewer contingencies even though the price offer is lower than the others.
A home inspection is crucial and you should always have the house you wish to purchase professionally inspected. With that being said, in order to speed up the transaction home buyers can agree to limit the amount of days required for an inspection. A home seller will also look more favorable at the buyer who agrees to delay the house possession giving a seller a few extra days to move out.
Write Your Own Offer Letter
It is part of a human nature to cherish the things we own. Most homeowners are proud of their home and work hard to maintain it. That’s why, while house hunting, prospective home buyers should treat a house and things inside it with respect refraining from unfavorable comments. Moreover, if you submit an offer in a competitive market consider writing your own offer letter to connect with the seller on a more personal level.
It’s a great idea to write an offer letter telling the seller what made you fall in love with their home. Was there something about the house which can create a connection between you and the seller? Maybe there was an NFL football team jersey on display which you happen to be a fan of as well? If you’re interested in a particular house because it reminds you of your childhood home you should write about it to the seller. Home sellers will be more willing to sell their beloved homes to someone who will equally appreciate it.
Last but not least, keep you letter short! In a competitive market, such as the Dayton OH real estate market, sellers have a lot of bids to look through so keep your offer short and sweet. Also, consider attaching a picture of you and your family.