By JAMES GOLDIN – MARCH 04, 2020–(Marketwired – MARCIA) The next few months will be crucial to the home buyer’s journey as the mortgage market shifts toward the end of the year, and with it the value of their home.
For a buyer who wants to buy a home as soon as possible, it will be important to get in line before the market is over and ready for an auction, said Peter Mott, founder of The Real Estate Research Institute, in an interview with Real Deal.
The next few years will be critical to the house buyer’s quest as the loan market shifts to the end It’s going to be tough, I think, in the first few months, but it’s going do a great job.
Mott said the process of finding an auction home can take a while, and the bidding wars can be fierce.
“You’ve got a lot of different bidding groups that have different ideas, and they’re going to want to know where they can get a better price,” Mott said.
Auctioneers will have to be aware of the risks and be willing to take those risks, but Mott added that he does not think many people will have any problems.
He said most people will be looking for a place that they know is within a certain amount of time, which usually is a few weeks.
As home prices continue to increase, there will be fewer home buyers looking for the best deals, he said.
“They are going to have to find buyers who are more willing to do a lot more,” MOTT said.
“They are probably going to come across some really high priced properties and the sellers who are going up in price.”
The buyer who is looking to sell can look for an estate agent or broker to help them find the right buyer, Mott explained.
The home buyer will then have to decide if they want to take on the mortgage on their new home, which will likely take a couple of years, Mowtt said.
But there are a lot different things to consider in a home purchase, he added.
In a home sale, the buyer will likely have to pay more than $1 million to purchase the home, he explained.
There will also be significant down payments, down payment costs and down payment bonuses, he noted.
Most home sales will be made at auction, with some exceptions, including when a property is purchased with cash or a loan, or when a home is purchased through a trust, MOTT explained.
In those cases, the sale price will be determined at the time of the sale.
To be considered for an appraisal, the home owner will have the opportunity to submit written documentation to the real estate appraisal firm.
This document will include a statement of intent to buy, including a contract, deed, etc., and will be presented to the appraiser at the sale, he emphasized.
For a home buyer, a good appraisal will help the buyer understand what he or she is buying and will give them a clear picture of the home and its value, Motta said.