Thinking Of Buying A Home In 2022? Here Are Some Things You Should Know
According to the experts, home prices are expected to increase at a slower pace in 2022 than it has this year, and mortgage rates will most likely rise. At the same time, the market will likely be closer to a normal year after the disruptions caused by the current global pandemic. That means, if buying a new home is your plan for next year, you should be ready for what’s ahead. Having a clear idea of what you’re up against can help you make better purchasing decisions. So, here are some things you should keep in mind when house-hunting in 2022.
Know what to expect
First of all, it is important to know what to expect, as this will affect your purchase. 2021 has been pretty tough for homebuyers, as many aspiring homeowners scrambled to find the right properties and even went on bidding wars while property costs shot up across the country. And while many experts expect 2022 to be less rough on homebuyers, you’re still going to need to put in a lot of effort to find your dream home.
As mentioned previously, mortgage rates will likely rise, and the competition for homes remains fierce.
Here are a few things you can expect next year.
- Home prices will rise steadily and slowly
- There’ll be more home buyers than homes
- Mortgage rates are expected to go up
Know what you want in a home and how much you can offer
Walking into the real estate market ill-prepared means, you’ll likely end up with a property that’ll leave you with a mountain of financial regret. Before you start shopping, know your spending limits, what you’re willing to offer, how best to structure your offer, and what terms you’re ready to negotiate. Your purchasing process will be less messy and pretty fast if you take the time to prepare.
You might also want to identify what type of home you’re looking for. How many bedrooms do you want, which location is ideal, and what type of home design do you prefer? For example, do you prefer to live in a multi family construction, or you’d rather opt for an isolated home?
Additionally, consider the neighborhood. How safe is it, what social amenities are available, and how close or far away are they?
Your family size and overall expenses
The negotiated sales price will likely not be the final amount you can expect to pay for a home, as other expenses are worth considering. Think about other costs involved in purchasing any home, such as additional closing costs, appraisal costs, inspection costs, etc. Additionally, be sure of your credit score and take the needed steps to improve if you have to. Also, take the time to research what your down payment options are. In most cases, you’ll need to make at least 20% of the original cost of the building available as a down payment. Have you also considered your family size? Do you expect it to increase or decrease? And how will that affect the cost of your home?
Photo by Binyamin Mellish