by BRITTANY ANAS
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The coronavirus pandemic has caused seismic shifts in the real estate market, spurring a higher demand for more square footage and thus a sudden interest in the spacious suburbs. Interest rates are low, but so too is inventory.
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Here are six things aspiring homebuyers should know about the 2021 real estate market.
A key aspect in President Joe Biden’s housing plan is to increase homeownership by providing up to $15,000 in down payment assistance to first-time buyers.
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The credit could help remove a major barrier to homeownership as many millennials—saddled with student loan debt and sky-high rent payments—have cited saving for a down payment as the insurmountable challenge that keeps homeownership out of their reach.
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It’s more critical than ever to position yourself as a qualified buyer by getting prequalified and having necessary documents available, so when that right property comes along, you can make a quick offer.
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Escalation clauses can be an ace in your pocket to help you win a bid. This clause allows you, the buyer, to pay a certain amount of money above the highest offer the seller receives and often comes with a cap to protect you from entering a deal you can’t afford.
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If you’re willing to wait until later in the year to buy, you may see inventory ease. The tradeoff, though, is you can expect to see slightly higher mortgage interest rates.
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Real estate experts encourage buyers to explore first-time buyer grants. You can see what grants you might qualify for by checking with your state’s housing finance agency.
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Ample square footage is high on the priority list of many buyers, prompting a suburban migration.
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Within 25 miles of the urban cores of the largest metros, house hunters can find homes with 25 to 65 percent more square footage for the same price as a home closer to downtown.
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Work with an experienced agent who knows the area where you’re looking to buy to help you get an edge.
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You might also consider opting for a new or custom build, or a renovation, to help you incorporate the features you want most in a home.
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Homebuyers are looking for that garage that has been converted to an in-law suite, or a bonus room they can turn into an extra bedroom.
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A home improvement project could help make multigenerational living possible and comfortable.
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