The perfect home in the best neighbourhood, a fair price, move-in ready condition, seller concessions - it’s obvious for a homebuyer to expect these things and more from a deal. After all, they are putting their hard-earned money into this investment.
But getting a win-win deal in a seller’s market when the housing market is booming is a bit tricky for homebuyers. And this is exactly what’s been happening in the Barrie housing market right now.
From February to March 2024, the average price of houses for sale in Barrie has climbed up to $760.771K, and properties sold have increased by a whopping 27%. Homebuyers are also actively buying houses, so available properties don’t stay on the market for a longer time.
So does this mean you must step away from the housing market even though you are set for the home-buying and ownership journey? Not at all! With a bit of smart tricks and hacks, you can get your dream home and the best deal even in a seller’s market. Scroll down below to learn how!
Tips to Successfully Buy a Home for Sale in Barrie Amidst the Housing Boom
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Get Your Financing Sorted Out Before You Begin Your Home Hunt
The key to winning in a seller’s market is to be ready to act fast and for that, your finances need to be in order. The first step that you need to do is to check your credit score. The higher your credit score, the better your chances of getting a mortgage loan for the Barrie property.
The minimum credit score varies depending on the mortgage lender and loan type but here’s what you can generally expect -
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LOAN TYPE
MINIMUM CREDIT SCORE
Conventional Loan
620
FHA Loan
500
USDA Loan
580
VA Loan
620
Jumbo Loan
700
Next, you need to keep your down payment ready for home-buying. Putting down a 20% down payment for the property is the gold standard but not mandatory. However, remember that if your down payment amount is less than 20%, you’ll have to get mortgage insurance (a significant financial burden!). Apart from the down payment, set aside at least 2% to 5% of the estimated property price for closing costs.
Lastly, it’s crucial that you get the mortgage preapproval before you search for houses for sale in Barrie. This is because, in a competitive seller’s market, you may get tempted to up your offer to win the perfect home.
However, buying a home beyond what you can afford can turn out to be a terrible mistake later on. With a mortgage pre-approval, you can know your spending limits. The approval also provides you with a competitive edge since sellers are more likely to go with a buyer who’s a sure deal in terms of finances.
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Jump into the Housing Market with a Clear Idea of What You Want and Do Not Want
In a seller’s market, you need to have a clear idea about what your dream home must be and how it shouldn’t be. This includes features like location, number of rooms, garage capacity, daily commute distance, good schools, and everything.
Knowing what you want in your would-be home and what you absolutely do not want can help you quickly narrow down homes during the search. So, when you find the home that ticks all the boxes, you won’t have to second guess whether you should move ahead or not.
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Partner with the Right Real Estate Agent for Seamlessly Navigating the Seller's Market
A skilled real estate agent can help you find the right home for sale in Barrie and assist you in closing the deal at a fair price and with minimum hassles. They know the housing market in and out, including everything about the housing boom. So, they can guide you in making a competitive offer and help you through the buying process that you’ll find difficult to do alone.
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Start the House-Hunting Process Without Any Delay
Here’s a thing about Barrie’s housing boom - the property prices and home sales are increasing. However, the number of available properties i.e. inventory are few and far between. This means whenever a house for sale in Barrie gets listed in the market, they don’t stay available too long.
So, keep this in mind and start the house-hunting process as soon as the above steps are ticked off. If you’ve already found a home that you’re interested in, get as much information as you can beforehand so you can decide if the property is “it.”
In case you are yet to find the perfect property, attend as many open houses as you can with your real estate agent. Keep your schedule open for touring houses, because in a hot seller’s market, available properties wait for none.
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Search for Houses Beyond the Hottest Neighborhoods and Your Favorite Areas
The prices of homes for sale in Barrie are always higher in the most popular neighbourhoods. So, if you’re hunting for houses in a comparatively popular area and you find that the property prices don’t match your wallet, look farther away from the neighbourhood. This way, you have a better chance of getting more square footage and better amenities for less money.
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Present an Attractive Price Offer That the Home Seller Can't Say No To
When you’re looking to buy a home in a seller’s market, you need to put your best foot forward - present a compelling price offer. To determine how much you should offer, consider the asking price first and the comp sales data. If that’s less as compared to your home-buying budget, you can offer a little more. You can consider the amount listed on your pre-approval as your maximum offer limit.
In case you’re financially able, you can also try making an all-cash offer or handing out a few thousand dollars in earnest money. This will make your offer on the house for sale in Barrie more compelling than other price offers.
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See If It's Possible to Eliminate Some Contingencies from the Offer
Waiving off contingencies is an amazing tactic for a home buyer to get a leg up in the seller’s market. This contingency could be related to a home inspection, property appraisal, financing, or others.
Contingencies are certain conditions that allow the homebuyer to back out of the deal if certain conditions are not met. Zero or fewer contingencies means a more seamless closing process for the home seller.
However, keep in mind that contingencies are there to protect you as a homebuyer so waive them off wisely. For instance, you may decide to waive off the home inspection contingency, but if you discover later on that the home for sale in Barrie is in need of major repairs, you’ll regret it big time.
Getting the Best Home-Buying Deal in a Seller's Market Is Possible
Buying a home in a seller’s market, amidst the rising housing boom in Barrie isn’t going to be easy but isn’t impossible either. If you carefully navigate the housing market with the help of the above steps, you can get a winning deal even when the market is in your favour. So, start preparing your finances, hire the best real estate agent, and follow the rest of the steps to start your successful homebuying journey in the seller’s market.