SAN ANTONIO, Texas — The housing market in San Antonio is not just hot, but sizzling. Home buyers are getting creative to get the best bid on a home.
“The buyer just has to be prepared for the journey it’s going to take,” said Sara Briseno Gerrish, a realtor with the San Antonio Board of Realtors.
Low mortgage rates are a large part of the reason.
“Right now, we’re sitting around 3%, which is absolutely amazing, considering about 40 years ago our parents and our grandparents were going after 10 to 18% interest rates,” said Eric Delgado, a loan officer with Academy Mortgage.
“The low interest rates, even though they did have a slight increase, they are still awesome,” Gerrish added. “They haven’t been this great in a while and San Antonio is a great city to live in. I think, with those factors, you see a lot of people trying to take advantage of those rates and make that move and purchase a home.”
The low interest rates will save you some money, but still be prepared to pay if you plan to purchase.
“What we’re seeing is clients offering above listing price, above asking price,” Delgado said. “They’re going $20,000, $30,000 higher just so they can have a stronger offer on the table.”
That means buyers will need a powerful plan to get a home. Get your financing ready first. There are lots of loan types buyers could qualify for.
“Your local lenders here in town will have conventional loan options, Federal Housing Administration options, VA for military, USDA,” Delgado said. “There are other options out there, including our down payment assistance programs.”
Then, figure out a strategy to make your bid stand out that includes more than just money.
“A strong offer is more than just sales price,” Gerrish said.
Consider a cash offer, paying closing costs, being flexible on move in dates and writing a letter to the seller about why their property is your dream home.
“Buyers are doing anything they can to try to get to the head of the list when there’s more than one person trying to buy a house,” said Jeff Ostrowski, a mortgage expert with BankRate.com.
He said even if mortgage rates rise some, the housing market is likely to remain hot.
“Buyers certainly are paying for their own closing costs,” Gerrish added. “Sometimes they are even paying some of the items that you’d see a seller pay for just to stand out from the pack.”
Also, know your limits when it comes to making an offer.
“Have a strategy if you think you’re going to get into a bidding war,” Ostrowski said. “Try to set some ground rules for yourself in terms of how much you’re willing to go over asking price.”
There is price and then there is patience. It will also need to be part of your strategy.
“Things are moving really quickly and that’s why it’s so important buyers need to work with their relator in order to figure out a strategy on how to differentiate themselves from the other offers in order to win out,” said Gerrish.
Add some perseverance to that plan. You might not get the first home you make an offer on or even the first several.
If you have a question for Eyewitness Wants To Know, email us at EWTK@Kens5.com or call us as 210-377-8647.