Benaisha Poole-Watson Gives 5 Tips For Buying A Home When Inflation Is High

Your homeownership dreams shouldn’t sit by the waste side because of an unpleasant economic downturn. Your preparation is what will set you apart from others on the market. If you are financially stable with an acceptable credit rating, buying a home is still valuable in 2022. Of course it won’t be fun or easy, but if you set realistic expectations and keep an open minded goal at the task at hand your home buying process will be worth the wait. In an exclusive interview with real estate agent Benaisha Poole-Watson, we spoke on the pointers she personally gives her clients who are searching in the current buyers market. 

1. Define Your Strategy 

When purchasing a home you should be upfront with pinpointing your end goal. For some it may be one of the largest purchases of their lifetime, and for others it’s a short term investment to build equity. With rent spiking in major cities across the US, owning a home is a liberating investment. 

2. Prepare your credit

A suitable credit score should be able to suffice your debt to income ratio, allowing you to leverage discounted rates and programs. It’s extremely important to stray away from large purchases when on the market, such as buying a new car or opening a new line of credit which may have a derogatory affect on your score. Having kept in mind your creditworthiness along with debt to income ratio, you’re one step closer to closing on your new home. 

3. Have an equipped budget 

Every home buyer should set a maximum and minimum price they wish to spend while also keeping a cushion for closing cost, calculated fees, and unexpected repairs that one may encounter after becoming a homeowner. On the other hand, the current buyers market is competitive. “Scared money, won’t make any money.” says Benaisha. Meaning, your risk tolerance should be somewhat high to compete with others on the market. These days sellers are at an advantage and are often choosing from multiple offers above the listing price. 

Something to consider: Are you willing to forego protections such as home inspection and appraisal contingencies? 

For example, waiving an inspection can be more attractive to a home seller but cost buyers the chance to uncover costly repairs. If you have allotted your budget for repairs, this option may be ideal for your chances of landing the house you can’t stop thinking of. 

4. Patience is a virtue 

It could take anywhere from days, in some cases weeks, and even months to close on a home. Not to mention the time it takes during the home search itself. Don’t get your hopes up only to be let down because your offer on a home wasn’t accepted. “If you’re waiting for the right scenario, it won’t happen” remarks Benaisha. Because the current market is somewhat cutthroat, it’s important to have a trusting support system which leads to Banaisha’s last and final tip. 

5. Build a strong team 

There are key components and people you should have in the process of purchasing a home. One of whom is your realtor who shall be knowledgeable and immersed in the industry to be able to win bids. Another key member is your lender and/or bank that secures the funds for real estate purchases. Each one of these parties shall be readily available for any questions and/or concerns you may have. While seeking advice from family and friends may seem inevitable, too many opinions can cause confusion. An important decision like such, requires professional and sometimes legal advice to make your investment worthwhile.