REAL ESTATE

3 Tips: Homebuying in 2022

By Jon Enberg, General Manager of the Carolinas at Opendoor

2021 proved to be a robust year for the housing market, driven by high demand for homes and resulting in painful experiences and bidding wars. For example, 98% of first-time homebuyers reported losing out on a home they were interested in.

As we enter a new year, and the housing market remains hot, there are three essential steps to consider to avoid the headaches many faced in 2021. Here’s how to start:

Establish your budget and get pre-qualified or pre-approved A trusted lender is a critical partner, even before you’ve set your sights on a particular home. Start the process with a conversation to understand what you can afford, based on your income, debts and financial responsibilities. As you’re budgeting, consider other aspects of the home purchase beyond the mortgage, such as property taxes and utilities. or pre-approved for your mortgage loan, which will give you a good idea of what loan you’ll qualify for.

Shop around to get your best rate One of the key terms of your mortgage loan will be the interest rate. While lenders often offer similar services and loan products, they sometimes vary on rates. Talking to multiple lenders can help you make sure you’re getting the best rate.

Make a cash offer— without having cash on hand Sellers often prefer all-cash offers for their certainty and speed. To compete with all-cash offers, which make up 30% of home sales, consider using a service—like Opendoor-backed offers— that lets you present a cash-like offer, waiving financing and appraisal contingencies. This tactic can help increase your chances of winning a home. A whopping 72% of sellers say they would prefer a cash offer presented by a company compared to a traditional offer. 2022 is sure to be another big year for real estate, as pent-up demand for homes continues. Despite competitive market conditions, the vast majority of Americans (73%) agree that buying a home is a good investment right now. If you get these items in order, you’ll be ready to start your homebuying journey.

* Data sourced from opendoor.com/w/blog/2021-first-time-homebuyers-report

Jon Enberg, Regional General Manager

Opendoor

Opendoor, a leading digital platform for residential real estate, has reinvented life’s most important transaction with a new, radically simple way to buy and sell your home. Learn more at opendoor.com.