Challenges Homebuyers Can Expect to Face This Spring (and How to Handle Them)

 Posted on December 00, 0000 in Residential Purchases

Purchasing a first home is one of major steps in developing long-term financial stability. Sadly, many buyers are learning that the market's favor is no longer on their side. Still, with the right tools and resources, it is entirely possible to make your home purchase dreams a reality this spring. Learn more in the following sections, including how a seasoned real estate lawyer can help to tip the scales and even the play field as you enter the negotiaiton process in your home purchase.

Low Inventory and Higher Prices

During the Great Recession, investors flocked to the housing market. Many of them now own a significant percentage of livable homes throughout the country. While this may be good news for renters, who often struggle to find rental properties in high-demand areas, it also decreases the number of homes available for sale. This issue, paired with the slowdown of new housing construction after the Great Recession, means that home purchase prices are high right now, and will likely to remain high for the rest of the cycle.

Price and demand are not the only issues here; with such a low availability of homes, buyers may feel the need to settle on one that falls short of their wants or needs. Negotiations can also become heated and aggressive in areas with high demand, which can be off-putting for many new hombuyers. Thankfully, you can overcome some of these issues by ensuring you hire a team of professionals on your side. A savvy real estate agent and a skilled real estate lawyer should be at the top of your list.

Lending Requirements Are Shifting (Especially for First-Time Buyers)

Lending requirements have changed significantly, and several times over, since the Great Recession. Initially, lenders focused on stimulating new home purchases, so lending requirements were less restrictive, specifically in terms of credit. Then the market started to level out. Now, with demand issues in a thriving market, the goal is to avoid potential mortgage defaults, which means lenders are tightening their restrictions again. First-time homebuyers, who used to find buying relief through government loans are likely to experience issues, too, as even the federal government is tightening its lending criteria.

Thankfully, homebuyers can limit issues in lending by first working on their credit. Ensure it is on par with what banks and other lenders want and obtain pre-approval prior to searching for a home. Lastly, homebuyers are encouraged to ensure they have enough in savings to work with, as this can build the buyer's confidence and increase their overall purchasing power.

Contact Our Naperville Real Estate Lawyers

Homebuyers do not have to face the journey alone. At Lindell & Tessitore, P.C., we offer assistance with the complex real estate matters that tend to take up your time and energy. In turn, you have more time to focus on the the aspects that matter most to you and your family. Start by first scheduling a personalized consultation with our Oak Brook residential real estate lawyers. Call 630-778-3818 today.

Source:

https://www.usatoday.com/story/money/2019/05/02/real-estate-market-how-buy-home-spring/3563380002/