The challenges that second-time homebuyers face
A swing around the old block one more time before you find your permanent forever home! (At least you hope so.) A second-time homebuyer can face just as many dilemmas as a first-time homebuyer.
The real estate market has changed drastically and it can be challenging to find the right home for first or second-time buyers! Luckily as Omaha real estate experts, we can make this journey as smooth as possible for you!
The housing market is not the same as it was 10 years ago or even five years ago! The interests rates are low and home values are high. Right now, the mortgage interest rates have been in a historically low spot with 30 year loans under five percent. While the lower interests rates are a great thing for first and second-time buyers, this means inventory is low as well! This alone can be a drastic change for a second-time buyer!
These are some of challenges a second-time home buyer might face after five to even 20 years since their last home purchase.
A rent back agreement
A second time-buyer could run into the dilemma of needing to sell their current home e so they can purchase their next home. This is called a rent back agreement in the mortgage when you sign the paperwork.
A rent back agreement is a post-closing possession agreement between the new buyer of the home and the seller. This means the seller is requesting to stay in the home for a certain time period. This is risk free for the buyer and seller as long as the seller is upfront and honest with the potential new buyer.
Paperwork, paperwork and more paperwork
The closing documents and process changed after the recession in 2007. Since then, there will be various documents that you and your real estate agent will need to review and sign together:
- Closing disclosure
- Promissory note
- The deed of trust
- Certificate of Occupancy
- Notice of right to cancel
This is just the paperwork for the closing agreement. It doesn’t include everything you’ll need to bring beforehand to this meeting and several other ones, along with banking paperwork for the loan on the new home. Oh my, we all wish there was an easier way to do this process!
You might of bought a fixer-upper for your first home and decided you just can’t do that again! The issue with a move-in ready home is the price is much higher. If you can afford a home that is a little more expensive, but move-in ready then this option is for you!
Not all older homes need a ton of TLC. Your real estate agent could find one needing a few things here and there, but overall, it’s a solid choice in a home! This decision is one for you, your real estate agent and your budget.
Technology and real estate
The newest way to get the house you’ve had your eyes on for the last couple months? Smartphones! Setup email alerts for when that house hits the market and is ready for people to start walking through! Get on the computer or smartphone and do substantial research on the neighborhood, the house itself, which otherhomes are available, price ranges and more.
You want to have an idea of what you’re going to be walking into. Of course, an Omaha real estate agent will provide all of this research to you as well. It’s just important for you to know what you want and need in your new home.
Move during a slower season
If you are looking for a starter home, between October and December is not the time to launch a search! In 70 out of 100 largest US metros, the number of starter homes on the market researches its annual peak during this time. The best time to buy a house is when the prices are low, but the best time of year is in the off-season. Around the holidays and winter, there are fewer buyers in the market.
Don’t worry, being a second-time home buyer isn’t all scary! This is an exciting new time for you, your family and significant other! This might be your family’s home or your home for retirement. Either way, getting back into the real estate market will be fine with the right Omaha real estate agent.