How to be a Smart Homebuyer in 2023

Many homebuyers are looking at 2023 with uncertainty. While no one can truly tell you what the housing market will do in 2023, we can make predictions based on past and current market conditions. Now this may sound like it’s getting complicated, because when you start analyzing the market it is complex. In this blog post we are going to break down four things you should know to be a smart & informed homebuyer in 2023.

1. Know Your Motive

Know your motive! Why do you want to purchase a home? Maybe you are having twins and your one bedroom apartment won’t cut-it anymore, or perhaps you finally saved enough money to purchase a vacation home to enjoy in retirement. Whatever your motive is, it is important that you keep it in mind throughout your entire search. This will determine things like the speed of your search - could you wait six months for the right property at the right time or do you need a place to live in 60 days or less? Knowing your “why” for your purchase will bring clarity to your home search and allow you to properly prioritize what is most important.

2. Know Your Budget

So, you’ve decided it is time for you to make the move, or your job has made the decision for you. Next up is to know your budget. Your budget will be that bottomline number that you are willing and able to pay each month for things like your mortgage, property taxes, HOA fees, etc. This is crucial to making a smart purchase. Once you know how much you can spend each month - you can see what the current market has to offer in that price range. To determine how much you can afford, you’ll also want to get pre-approved through a lender so you know what size home loan you can have. If you can buy something you like that’s in your budget, and hold onto it for long enough to see appreciation, that’s when you are likely to be most satisfied with your home purchase.

3. Know the Market

In the beginning of this post we warned you that predicting the market  can be tricky, but it is important. You can start by reading your local news sources and finding reputable stats for your area. However if you work full-time, tracking the market accurately may seem like you’re taking on a second job. As a buyer, you don’t pay the commission on a real estate sale, so use your resources and find a real estate agent you can trust! We made this video to help you do just that no matter what city you’re in. Knowing the current market will help you going into our next point…

4. Know the Strategies Available

Once you know the market and how it is affecting buyers & sellers, you can start to strategize ways to save money on your home purchase. Interest rate buydowns, seller concessions, your lender choice, type of loan, post-occupancy allowance, and so much more can be factored into your offer and the seller’s acceptance. If you are not a real estate professional, we know this is a lot to learn! Of course, most things can be googled, so you could start there, but as we mentioned above - getting an agent who understands  the market and knows the strategies available will save you a lot of hours, and make you less prone to missing a potential money-saving strategy. However, make sure you choose your agent wisely - they don’t all offer the same level of customer service & market knowledge.

If you take anything away from this article take this: you need to be an informed homebuyer in 2023 to expertly navigate the market and make the best purchase decisions for you and your family. In almost any market, there is a smart way to make a purchase. Some markets may be harder than others - but being an informed buyer is how you can know, and not just hope, that you made the right choice to buy or to wait.