Top 3 Tips for Buying in the Richmond Area Right Now
In 2022 thus far, the real estate market is hotter than ever and continues to be heating up. The headline of the market in the United States has been a record-low inventory of homes on the market and record-high prices.
But what about the subsection of the Richmond real estate market? Are the trends that we see here any different from the country’s macroeconomic trends? Continue reading to find out our top 3 tips for buying in the Richmond area right now.
- Get preapproved
The median sales price of homes in the Richmond metro area has increased by 7.5% since last year, climbing up to $324,338. Since prices have increased significantly and competition is fierce, obtaining a preapproval letter by your lender is one of the best steps you can take towards buying a home in the Richmond area today.
A preapproval letter shows sellers that you can confidently purchase their home and get approved for a mortgage for the total amount of the asking price. Without a preapproval letter in the Richmond area today, it makes it very tough to get your offer accepted by sellers.
- Make sure your credit is strong
Increased competition in the housing market comes with an increase in the strength of the applications of other buyers. Since over 73% of homes in the Richmond area are off the market in under two weeks, having a strong credit profile is imperative for prospective homebuyers.
Having an 850 credit score is not a necessity. However, paying off high-interest debt, making on-time payments, and reducing your credit utilization rate are all ways to ensure you have a strong credit profile.
- Save up for a down payment
Rising home prices mean higher down payment requirements. If you expected to put down 10% of the purchase price you saw last year, that same 10% is likely to be more today.
Do everything you can to cut your expenses and put away extra money so you’re positive that you have the necessary funds for a down payment and your mortgage financing will not fall through.
The Bottom Line
The Richmond real estate market is seeing record growth with record home prices and homes staying on the market for sometimes only a few days, and the market continues to be dominated by sellers. Still, by following our three tips, you will be in the best position to purchase a home in the competitive Richmond market today.
Ready to start looking for your dream home? Contact the Scott Garnett Team to start the process.