Everything You Need To Know When Buying A Home In The Summer
Since buying a home is one of the most important financial tasks you’ll encounter in life, we want to help you invest your time wisely by taking everything into account, and that means seasons.
Although there are obvious factors that will impact the price of your new home (such as size and location), another not-so-obvious factor is how seasons can also influence real estate prices. When it comes to buying a home in the summer, there are a few specific trends to keep in mind.
Let’s explore what you need to know about one of real estate’s busiest seasons!
First Thing’s First: Making Sure Your (Financial) House Is in Order
Regardless of season, it’s important to make sure you’re ready to purchase a home based on your current financial standing.
To ensure an easy mortgage loan application process, you’ll want to have a clear picture of your current financial situation. Such as your credit score, credit history, employment history, and so on. Don’t worry if you don’t have this, your lender will pull a full credit report during your application process.
Once you’ve made the effort to gather everything you’ll need, you should also consider working with your lender or mortgage loan advisor to obtain a pre-qualification letter.
The benefits of doing so are two-fold:
- In the competitive summer months, you’ll be able to swiftly make an offer (while also appearing more eligible and serious to the sellers you’re making your offers to).
- Second, you’ll know exactly how much house you can afford, which saves you precious time during the house-hunting process by only attending viewings and walk-throughs for homes that are a good match for your budget.
(Not to mention, spending less time in the brutal summer heat!)
The Inventory Myth: Summer Doesn’t Always Mean Inventory and Pricing Heats Up, Too
While it’s true that the housing market does see a spike in activity and pricing once spring and summer are in full swing, some markets aren’t brimming with the same level of inventory they used to.
To really get a sense of your region’s existing home sale activity (and the level of potential competition), you can use resources such as this housing statistics page from The National Association of Realtors.
In a nutshell, the greater the level of activity (and therefore inventory) in your area, the better your odds of finding a home that meets what you want and need. Although this can also lead to more competition, a high level of inventory may incentive sellers to come down a bit in price to sell faster.
Note: It’s important to also remember that other factors such as the overall economy and job market, and current loan interest rates, will influence home prices in any season.
Three Other Things to Consider About Buying A Home In The Summer
1.Don’t let those rose-colored glasses fool you – Improved weather can elevate our mood, and in turn, sometimes cloud judgement a bit. In the summer time, nature is blooming and the sun is shining, which can brighten a home’s curb appeal but mask potential problems, too.
- With the colder, wetter months yet to be experienced, the dry summer weather can hide leaks and moisture problems that may be lurking. Be sure to check for any warping around door and window frames, and examine walls and ceilings to look for any clues.
- Even if the home is going to be inspected if you decide you’re interested, being aware of these issues in the first place may change your mind, saving you valuable time and expenses.
2. Summer Gives You Greater Insight into The Area – This is especially true if you happen to live in a more seasonal area where the fall and winter months are much colder. In the summertime, days are longer and people are spending less time cooped up inside and more time on activities.
- This allows you to see who your potential neighbors are and get a feel for how active the area is. Take a moment to soak in the details. How loud is the area? What’s traffic like? If you have children, does there seem to be plenty of other kids for them to befriend?
- You can also use the warm weather to get important insight into the house itself, such as inspecting outdoor plumbing, how well air conditioning or central air works in peak temperatures, potential dead spots in your yard, making sure all windows function properly, etc.
3. School’s Out (and Why This Matters Even Without Kids) – If you have children, summertime means the school year is over. This means less stress in trying to find the right time to view a property and also allows you to include the whole family to see how everyone feels about each potential property.
- Even without kids of your own, your seller(s) may still have kids. In that case, they may be in more of a rush to close a deal and move out, in order to find a new home before the next school year kicks off. In addition to a faster closing, this could also open the opportunity for a little extra wiggle room in negotiating. However, as with any offer, always remember to remain realistic based on the current market.
Finding the Right Mortgage
No matter the season you end up hunting for your next home, getting the right mortgage for your current needs and future goals is critical. Having peace of mind that you’re ready to buy and have rates that make sense for your unique situation will ensure your next steps as a homeowner are always enjoyable and hassle-free.
When the time is right for you, we can help you with your next home mortgage.