If you’re looking to buy your dream home, you’d probably prefer that the process be over as quickly as possible. Wouldn’t it be great to start your search, find the perfect home, and move in within a few weeks?
Unfortunately, it’s not always so simple.
How does the housing market affect how long it takes to buy a home?
The current state of the housing market has a massive impact on the amount of time it’ll take to finalize the purchase of your home.
In fact, the state of the housing market has an effect on every aspect of the homebuying process.
For example, the market is affected by current interest rates; if the federal funds rate has been increased, it probably means a higher interest rate on mortgage loans– but it can also mean that the process can take less time due to less demand on the market.
It’s important to understand whether the housing market is currently deemed a buyer’s or seller’s market. If it’s a buyer’s market, you can probably expect the process to go a little more quickly, since that means the buyer has some leverage over the seller.
In a buyer’s market, the demand for houses has decreased, while supply of available homes has increased– so buyers have their pick of a larger amount of homes.
How can I tell how long it will take to buy a home?
In 2022, the market has fairly consistently been considered a seller’s market.
That’s because the supply of available homes is outstripped by the amount of demand from potential homebuyers.
Increased demand from homebuyers means that there are more people in competition for the same houses. If you find the perfect home, the process is not quite as simple as just making an offer and finalizing the sale.
In fact, you might find that multiple people have made offers on the same property. And with real estate giants like Zillow purchasing homes themselves, the buyer might be able to offer the seller the full sale price in cash, upfront.
If you’re not able to offer cash upfront– and most people aren’t– you might find yourself at a disadvantage. The house you have your heart set on might go to another buyer, which means that you should have a good number of potential options in mind.
How long does it take to buy a home right now?
On average, the homebuying process takes about 40-50 days after the home is under contract, which means that an offer has been made by the buyer and accepted by the seller.
However, there’s plenty that goes into the process before the house goes under contract. Prior to that step in the process, the buyer has to conduct research about what houses they want and can afford.
They also must get prequalified and preapproved for a mortgage loan, which can be difficult depending on their personal finances– for instance, someone who works as an independent contractor might have to go through more steps to prove their income in order to be approved for a loan. Those extra steps add some time onto the process.
How can I speed up the homebuying process?
One of the best ways you can speed up the process is to find a great real estate agent.
Working with an agent with industry experience and connections can help you find homes you might not be able to find on your own. An agent can also walk you through each phase of the process, which can help you get a leg up on other potential buyers.
To get connected with a great real estate agent from the experts at Edge Realty, send us a message today!