Here are four tips for those looking to buy a home in 2022.
What should you do if you’re going to buy a house in 2022? It’s a good question, so today I want to give buyers some advice as we head into the new year. This advice applies to renters, people buying a first home, or those moving from an existing home.
1. Just do it. It’s a popular marketing phrase, and I’m sure you’ve heard it before, but there’s a lot of truth in it. Look at it this way: Every buyer my team sold a home to in 2021 is glad they went through with it. They all love their new places, and they are pleased with our rapid price growth.
2. Inflation is 7% annually. This is a high number, but it’s even higher for real estate. Houses in Northwest Ohio are expected to increase in value by another 10% this year, which gives us an interesting math problem. If you “overpay” by $20,000 on a $200,000 house, will you have overpaid in one year? If my math is correct, your new home will be worth $220,000, so I wouldn’t call that overpaying.
“Homes are continuing to appreciate at a rapid pace. ”
3. If your offer is financed, consider an appraisal gap clause. This clause gives you a huge leg up against the competition. Basically, if a house doesn’t appraise, you can agree to pay the difference in cash. This is a great technique to make your offer stand out, and I’ll probably cover it in more detail in a future blog post.
4. Look at things by area. For example, the average price for Waterbury in 2021 was $266,750 at the beginning of the year and $308,000 by the end. This means that if you bought in January of 2021, your home increased in value every month by more than your monthly payment. It’s hard to beat that deal.
The same factors that led to our crazy market in 2021 are still present in 2022. Take advantage while you still can. If you are interested, please give my team a call at 419-466-SOLD or send us an email at jon@modene.com. We’d love to help you!
