5 Tips for Buying Your First Home in Albuquerque
Albuquerque’s housing market is getting more and more difficult for new buyers to break into. But, there are tips that can help you out when looking to make a purchase.
Albuquerque’s housing market has seen significant recent growth, and it doesn’t show sign of slowing anytime soon. February 2018 saw sales rise 5.6 percent when compared with February 2017.
Not to mention an additional 1,142 homes selling during the same Feb. 2017 to Feb. 2018 comparison. All in all, demand is significantly increasing and thus driving prices up.
It makes a tough situation for the new Albuquerque home buyer. Buying your first home is difficult enough without a market inflating prices and pressuring you into quick decision making.
So it’s essential to go into the home buying process armed with the proper knowledge of the local market. A few tips can go a long way to making the buying process much easier.
Which is why we’re breaking down the 5 must-know tips for buying your first home in Albuquerque.
Create a List
Finding homes for sale in Albuquerque isn’t easy. The number of home buyers outweighs the number of available homes, meaning you need to keep track of what’s currently available.
It’s especially important if you’re tracking the market with a significant other. Your first choice might be sold by the time you’re home for the day to discuss plans.
We suggest creating some sort of shareable document to keep track of every new home you find. Google Docs works especially well, but anything with both desktop and mobile access will do.
You’ll also need to ensure you’re sharing these documents with your realtor, and keeping them in the loop via phone communication when anything comes up you’re interested in buying.
It also helps to give your agent a list of conditions you’d like any home to meet. This includes price, home size, lot size, neighborhood etc. If they find a home request that they contact you immediately.
…And Act on it Fast
Any home on the market will go fast in the current real estate climate. Seeing a home first and making a quick offer is the key to ensuring you don’t lose out on your dream home.
Acting fast means staying coordinated with your broker to ensure you’re moving on properties before other buyers.
It takes effort, and it takes time. Clearing your schedule to see homes should become a priority if you’re serious about buying a home in the current market.
Always make sure you relay your true interest to your agent. Not so hot on one home? Don’t walk through if you could better spend that time looking at another house that you like better.
Also, you shouldn’t waste time on “pipe dream” homes. If you’re touring homes out of your budget you’re wasting valuable time. Capitalizing on a quick offer nets the best homes in a seller’s market.
Stay Wary of Problems
For all of our encouragement to make a quick offer, it’s still important to check the house for any signs of problems. Anything from leaky windows to cracked foundations affects value and if you should make an offer at all.
Be sure to inspect the home for problems signs during your walk through. Ask your realtor what to look out for and also what questions to ask the seller and their agent.
Your agent will also likely have their own questions for the seller’s agent. They’ve been here before and know what’s prudent to ask. Though do remember that your own questions are equally important.
That all said, don’t get scared away by homes that need some work. In a seller’s market, you might expect to see a few potential repairs, and not expect them to have a huge effect on the closing price.
Get Pre-Qualified for a Loan
When time is of the essence it’s extremely helpful to get yourself pre-approved for a loan before looking at any properties. This way, you’ll know exactly what you can afford without having to move through the sometimes tedious process of getting approved for a loan.
The first step is finding a lender to work with. These are usually your local banks or credit unions. We can help you find a lender to get you pre-qualified for a loan. If you are veteran or active duty member, you may qualify for a VA Home Loan.
Come prepared to the lender meeting with income information, credit scores, equity, your savings, and etc. The lender looks at your profile and then determines what kind of mortgage you’ll qualify for.
It’s a process that can take time, but making an offer is much easier when you can head to your lender the next day and get the process in motion.
Know Your Ceiling
A benefit of getting pre-approved means knowing your ceiling before touring any property. You’ll know what can spend and won’t run the risk of over-stretching your ability to secure a mortgage.
When we’re mentioning your ceiling it’s also important to remember that what seems like the maximum you can afford per month isn’t really the maximum.
Beyond your mortgage, you’ll still have to pay property taxes, as well as fix whatever issues arise in your new home. Always budget extra money into your ceiling.
And as we mentioned, you also might need to make some minor fixes to your new home. These can compound and end up costing more money than you anticipated.
Buying Your First Home 101
Buying your first home shouldn’t scare you too much. While a seller’s market is tough, it’s not the be all end all of home buying. You can still find something in your budget.
When you follow the above tips, you’ll end up finding something you can afford with just a little time and effort.
So if you’re in the market to buy your first house in the Albuquerque areas, consider getting in touch with our team of real estate experts.
We have years of experience in the area and know the local market trends. It’s our goal to put you in the house of your dreams as soon as possible.
So don’t wait, let’s get started home buying today!