With the home-buying season among us, buyers will be flooding the markets in search of the perfect home. This often means competition among house hunters leading to bidding wars that can drive prices through the roof. While this sounds tedious and unappealing, there may very well be sometimes that engaging in a bidding war makes sense.
Although the tide seems to be turning, the fact remains that it is still a sellers market. Inventory levels are still below healthy levels meaning buyers are clamoring over the homes that are listed. Taking that into consideration, it might be expected that buyers will face a little competition.
Additionally, sometimes homes will be deliberately unpriced to lure multiple offers. Be sure to use a true market value to establish your baseline and not an artificially low starting point. And of course, if it is your dream home and you simply cannot live without it, it may be worth it to battle it out – if you can afford it.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.