How to buy a home in this market in 2022 – New Mexico edition

You have probably heard what a “crazy” market it is out there to buy a home.   While it is an imposing project, it’s not impossible and I will try to show you the best steps to take in order to purchase a home in today’s market.

STEP ONE – PREQUALIFICATION

1.  The first step is to get prequalified with a competent and experienced lender who is familiar with the local market where you want to purchase.  Each market has its own unique conditions and customary practices, so it is essential to choose a lender who has experience in your chosen area.  Make sure your prequalification letter contains enough information to satisfy the Seller of the property that you have gone through the initial steps to be prequalified and that you present yourself as a ready and qualified buyer.  Each property is like to have multiple offers, so you want to be sure you stand out from the crowd!  Don’t start home shopping without this first step!

2.  Choose a REALTOR that you feel confident with.   Interview that person to find out what they know about the market and the area that you are wanting to purchase in.  A good REALTOR will tell you their area of expertise.  Find out what they think about the market conditions and how much they know about the contracts.  Yes, that’s right – your REALTOR needs to be an expert not only in the market but in the contracts!   There are strategic advantages to knowing the contracts in and out so that your offer is presented correctly.  Ask your REALTOR for a copy of everything you are going to sign ahead of time so that you can review the contracts before signing the documents.  Most signing will take place electronically, and in the rush of the moment, there may be nuances that are missed by you that will be important later.

3.  Understand the market you are interested in.   Be committed to the process and know that you will most likely be paying over the list price (what I like to call the “Suggested Retail Price”) and you will have to be comfortable and qualified to go the distance if this is the home you really desire to own.  Each area will have its own data that will show you how much over list price you may be expected to offer.

4.  Understand that the inspection process is for your benefit, so be acquainted with the home inspection process.  Home inspectors are licensed in the State of New Mexico, so it is important that the inspector that you choose is licensed by the State and qualified to perform the inspections that you deem necessary to satisfy your curiosity about the home’s conditions.

5.  If you are thinking of renting first, just to “look around”, know that the rental market is often just as competitive as the purchase market.  You may want to consider long-stay hotel chains or AirBB opportunities, as most residential rentals only accept one-year leases.  You don’t want to get too committed to a lease as you may miss out on your home purchase.

The strategy is Planning, Planning, and Planning.

Plan to talk to a lender first.

Plan to choose a REALTOR.

Plan to move quickly but with knowledge of the area and the market.

For more information about specifics of the real estate market and how to work with me to assist you, please feel free to contact me anytime!