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Understanding the Local Market
Before you jump into buying a house, it’s important to understand the local market here in Southwestern CT, also know as Fairfield County. Since 2020, we’ve seen a historic number of homes changing hands. Even those homeowners who decided not to sell were able to take advantage of historically low interest rates. This surge in the trading of properties in recent years, has directly impacted the lack of new listings we are experiencing today. We remain in a “seller’s market” due to this lack of inventory. The properties that are mostly trading now are new constructions, and the properties of those who have experienced a life-changing event. Since land is scarce in our area and life change is subjective, the inventory has been limited for home buyers.
Pent-up Demand for Housing
There is a strong pent-up demand for housing in Fairfield County, CT. We still have folks who did not have the opportunity to buy during the past few years because of over bidding, the rise of home values, then the rise of interest rates, in the mix with the new “now ready” buyers entering the market.
Thankfully, time doesn’t stand still and life moves forward. The need to trade up to a larger home will eventually out weigh the lower percentage rate. Retirement and relocation will open new doors as well as other events will trigger home sales. Transactions will continue to happen every day, giving more new opportunities to this group of first-time homebuyers in the coming months of 2024.
I’d like to share these tips for first-time home buyers interested in Southwestern CT.
Financial Preparation
Having your finances in order is crucial when considering buying a home. Speaking with your lender will educate and prepare you for what is required in getting pre-approved for a mortgage. Your mortgage lender will consider several factors, including your credit score, debt-to-income ratio (DTI), assets, reserves, and employment stability, to determine your buying power.
The best properties sell quickly and often receive multiple offers. Most people want the shiny penny. Understanding your buying power is not only helpful for setting realistic criteria but also allows you the time to prepare your finances to align with your expectations. Once financially prepared and pre-approved, you can start your search with confidence.
Research and Planning
Research and planning are essential steps for first-time home buyers before viewing homes. Conducting some research beforehand can help narrow down your location goals. Consider what factors are important to you. Do you prioritize schools, amenities, commute time, or future development plans? Websites like Niche.com can provide valuable insights. Check out the real estate market inside scoop for the community you love.
Once you’ve settled on your desired location, it’s time to consider the type of property that best suits your needs. Whether you’re leaning towards single-family homes, condos, or townhouses, each option offers its own set of advantages and drawbacks. Private homes come with land and exterior upkeep. Condos and townhomes come with association fee to maintain these items. Take a moment to weigh the pros and cons of each scenario, as they all provide a distinctively different living experience.
Home Search and Selection
Partnering with a realtor who is mindful of your goals, budget, location, preferences, and timeframe can make your home search experience enjoyable. During this exciting period of exploration, you can identify your must-haves and nice-to-haves in a home. All these factors will converge to shape your home search and ultimately your selection, while reflecting your vision of your dream home.
Town and Property Information
Making Your Offer Count
Once you’ve selected a house, you and your realtor can discuss making an offer and assess how it aligns with the current market trends in the area. Consider the value that this home will bring to you and your family rather than focusing solely on the exact price; land and properties tend to increase in value over the long term. Focus on the terms of your offer without leaving yourself exposed financially. Lean on your agent and mortgage lender for information. and listen to your inner voice. The key to your new home is making your offer count as a first-time home buyer.
The Buying Process
Once your bid is successful, your agent will walk you through the buying process. They will help you with inspections, handle negotiations, guide you through contract contingency dates, and ultimately facilitate the closing on the house and beyond.
Reach out to me if you have any question regarding these tips for first-time home buyers or if you have any other questions on topics not yet covered.
