Home buyers can begin to rejoice as the chaotic real estate market that has dominated for two years has ended. From spring of 2020 to spring of 2022, if you were home shopping, your head was left spinning from bidding wars, waiving inspections, and appraisal gaps.
The good news for home buyers in the New Orleans market is that the chaos has ended. At least the bidding war portion. Of course, there are always new issues that arise!
Insurance
Homeowner’s and flood insurance is at an all-time high in the New Orleans metro area. When working on your house budget, ensure you’re talking with your insurance agent, lender, and real estate agent about this! Rates have soared as companies have pulled out of our market. The amount you will pay in insurance could affect your forecasted monthly spending.
[SUGGESTED READING: Insurance 2022]
Ignore online calculators
Online calculators have been WAY off on anticipated monthly insurance and tax estimates for the New Orleans region – but it’s even worse now!
[SUGGESTED READING: Why you should ignore online calculators]
Interest Rates
As of now, in June 2022, interest rates have climbed over 6%. If you have been working with a lender for over a year, make sure you chat with them about how this will affect your monthly budget. If you started home shopping when the rates were at 3.25% – this spike in the interest rates will make your payment look very different.
[Need a local lender: Here’s our favorite]
Closing Costs
Getting a seller to pay any of the homebuyers closing costs in the last two years has been almost impossible. As the market has shifted quickly, this is also changing! You will find yourself in a position to be able to ask for this again!
[SUGGESTED READING: What are closing costs? & Do I need closing costs?]
Repairs
Negotiating repairs during this wild real estate market was a pipe dream. Well, the good news is that sellers have to be more accommodating now that the buyer pool has shrunk! You still need to make an offer based on the information provided and what you can see. But unexpected repairs that arise are open for negotiation!
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Extra Costs of Home Buying
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