The Wilmington, NC, real estate market is like a trusty old hound dog. It may be willing to chase prey in and out of the underbrush, but it has a sleep schedule that hardly a train could interrupt. It dips in the winter and rises in the spring, and flows through the summer until it starts its downward slope in the fall…and it’s been this way for many years. But we don’t recommend waiting to begin the home buying process until spring. Here’s why you should start your Wilmington home search in January.
Why the Spring Real Estate Market is So Busy
Spring is the Listing Season. Why? There are a few reasons:
1. Homes show the best during spring. There’s more sunlight, flowers are blooming, and the grass is greener.
2. School is winding down. Buyers with kids aren’t always willing to move during the school year. As summer break approaches, their schedules become more flexible.
3. Finances. Taxes have been filed, accounts have recovered from the holidays, and overall, people are financially ready to buy or sell.
4. Tradition. Spring and summer are the height of the real estate market in many places. People have it ingrained in their minds that it’s the best time to buy and sell, despite other seasons having their benefits.
While inventory will be at its highest in the spring, you shouldn’t wait to start the buying process.
Start Your Wilmington Home Search in January
If you’re planning on buying a home in the spring, January is a good time to start the process. It gives you 3 months to fine tune your finances, get preapproved, and familiarize yourself with Wilmington communities. Here are some things to focus on:
Your Credit Score
You can’t drastically improve your credit score in a week, but there are some things you can do if you have a couple of months.
1. Challenge incorrect info on your credit report. You can dispute credit report errors with all three major bureaus. They have 30 days to investigate and respond. Once the information is removed, your score should go up.
2 Increase credit limits. When your credit limit goes up, but your balance stays the same, it improves your credit score. However, you want to verify with your card company that it won’t register as a “hard” credit inquiry, which can make your score dip a few points.
3. Make frequent payments/pay on time. Consider using your credit card like a debit card and pay on it every time you use it. These frequent small payments will increase your credit utilization factor, a major component in your credit score.
Loan Preapproval
Before you can do anything serious with your home search, you need to get preapproved. Of course, you don’t want to do this until after you have your finances fine-tuned, but that doesn’t take very long. This is an incredibly important step in the buying process as it verifies exactly how much home you can afford to purchase. You’ll also want to speak with more than one lender. Lending packages can overlap from mortgage broker to mortgage broker but not all are the same. You want the opportunity to get the best rates and terms, so shop around. You also may not mesh with every mortgage broker you meet. Choose one you feel comfortable working with. You’re putting a pretty important task in their hands that will affect your financial future.
Once preapproved, you’ll know exactly which price range to setup your Wilmington home search for, and you’ll be ready to submit a preapproval letter when you find the home you want. Most sellers won’t accept an offer without a preapproval letter. If a multiple-offer situation arises, your preapproval may take too long to complete for you to compete with other buyers. It pays to be ready!
Needs and Wants
You’ll read this a lot when researching buying a home. You need to make a list of features you need and want in your new home, including the distance to work, family, etc. It may seem to be an obvious task, but you literally need to write them out or you’re likely to find yourself teeter-tottering. It’s especially important when you’re making a home purchase with another human being. If you aren’t searching with the same goals in mind, it could cost you time and money, especially if one of you give in, decide you aren’t really happy, and pull out of a contract after the offer has already been accepted.
Hire a Wilmington REALTOR®
We recommend hiring a REALTOR® before you start seriously looking at homes for sale. Not only do we have professional insight into the real estate market, but our local Multiple Listing Service (MLS) has a much more robust search system than the well-known public websites. It can locate properties that may otherwise be overlooked, and it’s only available to REALTORS® and their clients. You’ll also want a REALTOR® if you’re planning on purchasing in a new construction community. In our area, community onsite agents represent the builder, not buyers. You’ll want someone protecting your best interests.
Exploring Wilmington
Even if you’ve lived in Wilmington for a while, you need to refresh your knowledge of the area when buying a home. Unless you’re a traveling tradesman, chances are you haven’t gone into most of the residential communities in the past 3 years. It’s time to look at your options and consider how current/future public improvement projects will change areas, especially where roads are being built or improved.
To recap:
• Your preapproval affirmed your price range.
• Your Needs and Wants List gave you an idea of what features to look for, including the area of Wilmington you want to be located in.
Now it’s time to tread through the long list of Wilmington, NC, homes for sale. You’ll quickly see there are neighborhoods you love and others you definitely don’t like (plus, some in between). Jot down the potentials and drive through them. You may want to do this at different times throughout the day to get an idea of traffic and lifestyle. Educate yourself on this now, because once the spring market hits…
It’s Like the Chick-Fil-A Drive-Thru at Lunch
You best have your order ready, because those 10 people sitting in their cars behind you want their chicken sandwiches and backtracking may mean having to wait in that long line all over again. Inventory is tight! Get your preapproval and know what you want, and you won’t have to wait for another home in your preferred location to come on the market.
Conclusion
When you think about everything you need to do to buy a Wilmington home this spring, you quickly realize that 3 months isn't a lot of time to get everything done, but it is time well-needed. If you need some guidance, don't hesitate to reach out to us at The Cameron Team. We're happy to help! From referrals for reputable lenders to representation in the buying process, put our professional experience to work for you.
