WASHINGTON 鈥� Along with singing birds and longer, sunnier days, 鈥渇or sale鈥� signs posted in green lawns are a sure sign of spring.
Now through summer is the busiest time of year in the real estate industry, and expert Corey Burr said it all has to do with the school calendar.
鈥淲hether or not we have children, our human biorhythm is based on a school schedule and many people like to move during the summer months 鈥� whether that鈥檚 May, June, July or August,鈥� said Burr, senior vice president at TTR Sotheby’s International Realty.
鈥淪o then accounting for the marketing time and the settlement time, it usually means that a lot of properties come on the market in February, March, April and May.鈥�
If you鈥檙e in the market to buy a home this spring, Burr has some tips:
#1: Speak with a loan officer
You saved up for a down payment and have a pretty good idea of how much you can spend on a monthly mortgage 鈥� but how much house can you really afford?
That鈥檚 where a loan officer can help.
鈥淭hat person can tell the buyer how much is needed for a down payment and how much is needed for closing costs,鈥� said Burr, who added that many first-time homebuyers forget to account for additional fees that come with buying a home.
鈥淐losing costs can range from 2 to 4 percent of the purchase price, so it can be a lot of money depending on the purchase level.鈥�
A loan officer can also help a buyer better understand his credit score.
鈥淥nce the initial credit score is run, if there are any dings on it or if there are easy ways to improve it quickly, a loan officer is versed in those fixes, and that can make a big difference in the interest rate that a buyer gets as well as the loan program that the buyer would qualify for in terms of the needed down payment,鈥� Burr said.
鈥淚t鈥檚 very important to figure all this out because this becomes the road map for the buyer for looking at open houses and to discuss with their realtor so that they鈥檙e not overshooting their price range or undershooting it.鈥�
#2: Location over luxury
When it comes to shopping for a house, it鈥檚 important to focus on where, exactly, you want to live, and not become distracted by fancy fixtures and other aesthetics.
鈥淓ven though it might be very sexy to find a house with a new kitchen and a new master bathroom and a new roof and a finished basement, keep in mind that the location can鈥檛 be changed,鈥� Burr said.
鈥淥ther improvements to a house can be made. One can put in a new kitchen or renovate bathrooms over time, but that house cannot be picked up and put in a more desirable location or a better school district.鈥�
#3: Don鈥檛 skip a home inspection
One of the most important things you can do before sealing the deal on a new home purchase is to include a home inspection in the contract.
鈥淚t鈥檚 the opportunity for the buyer and the inspector to uncover defects in the property while there鈥檚 still an opportunity to negotiate the fixing of those defects,鈥� Burr said.
Often, a motivated seller will offer credits to a potential buyer to help offset the cost of repairs, or will even hire a contractor and take care of the repairs before settlement.
#4: Don鈥檛 buy too much house
By the time a down payment, closing costs and other fees are accounted for, buying a home can quickly drain one鈥檚 bank account. And Burr said that is why it鈥檚 important not to buy a home that鈥檚 too expensive for your budget 鈥� especially since things are bound to break at some point.
鈥淚n case the roof starts to go bad or there鈥檚 a problem in the basement, or if the heating and air conditioning system goes bad 鈥� these are just all things that you have to keep at the front of your mind when you buy something,鈥� Burr said.
鈥淚f you buy too expensively, you鈥檙e going to become house poor, and that鈥檚 not a great situation to be in.鈥�
#5: Make your offer stand out
Even though there are more houses to choose from in the busy spring market, competition is still stiff 鈥� especially in a 鈥渉ot market鈥� area, such as D.C.
Burr said one thing that can make your offer stand out among others is a pre-offer inspection.
鈥淩ight after it comes on the market, and you feel like you want to make a bid on it, you can make your offer cleaner by hiring an inspector to do an inspection before offers are due,鈥� Burr said.
This removes the home-inspection contingency in the purchase offer, making it more desirable to the seller.
鈥淲hen you鈥檙e in competition with other buyers, and we鈥檙e bound to have it in certain neighborhoods in the spring market, you want to have a pre-offer inspection, you want to make sure that your financing is taken care of, you might still need your appraisal contingency to make sure that the property appraisers well, and then ask for the timing: If you can be flexible, make the timing work for the seller,鈥� Burr said.
鈥淎nd that really makes your offer head-and-shoulders above someone else鈥檚.鈥�
