Problems Home Buyers Face
Buying a house is not something we do very often, so many aren’t ‘experts’ at it. It’s a once-in-a-lifetime decision that requires a lot of planning, searching and networking. Problems can occur when purchasing a new home. Below are a few common issues.
Not enough homes for sale
Almost anyone who has searched for a home recently knows homes are hard to come by. One reason is after the housing market crash years ago – property owners converted millions of houses into rentals, and landlords are reluctant to sell properties that are earning them income. St. Albert real estate is selling at record rates. Homes priced in the lower end of the market are in especially short supply. Mortgage forbearance programs are keeping people in their homes who otherwise wouldn’t have been able to afford to stay, which is keeping those homes off the market.
The Covid pandemic has created a housing nightmare for buyers and sellers. A shortage of homes for sale continues to boost prices across the nation by double-digits and pushes house hunters to go to extremes to win bids. Offering 10K over the asking price isn’t enough sometimes. Buyers are writing letters, waiving inspections and some are offering cash offers. The cost of buying a home isn’t insignificant. When you throw in a bidding war, the chance that you might overpay is there.
First-time home buyers tend to be surprised by high repair and renovation costs. Buyers can make two mistakes: First, they get a repair estimate from just one contractor, and the estimate is unrealistically low. Second, folks tend to rely too much on TV shows that make renovations look faster, cheaper, and easier than they are in the real world.
Problems with a mortgage
Perhaps you exaggerated the application, interest rates might increase sharply, your job/ income situation could change, or your credit score may go down. Ask your lender how you can avoid problems like these. Furthermore, potential lenders owe you an explanation if financing falls through. Race, religion, and national origin should never delay anyone’s dreams of homeownership.
Difficulty finding right home
The cycle of low inventory can be attributed to the fear of being unable to find something to buy. For some would-be sellers, renovating or remodeling their home makes more sense, particularly when they have a low-interest mortgage and like their neighborhood. Some empty nesters who may be ready to downsize- can’t find the right size home in the area they want in their price range. It’s a vicious cycle.