The Mississippi real estate scene is growing, and there are plentiful reasons behind it, such as affordable education, low cost of living, great food and music scene, etc. If you have been thinking about settling in Mississippi and don’t have much knowledge about its real estate market, don’t worry, we’ve got you covered.
This guide will cover every aspect of buying a home in Mississippi, such as what factors you should consider before purchasing a home, how you should narrow down your approach, and how you can find the best home for yourself.
Let’s dive in.
1) Evaluate your financial situation
The first step toward buying your home is calculating how much you can afford for the new property. Consider every possible element of finances such as credit score, debt-to-income ratio, down payment, closing costs in your calculations. Next, add your already running loans such as credit card payments, student loans, auto loans, alimonies, personal loans into consideration.
Similarly, remember that homeowners have to spend almost $3000 every year on home maintenance.
Make some calculations, such as your monthly mortgage must not be more than 36% of your monthly income. So if your income is $4000, your monthly debt must not exceed $1440 in any case. Doing these calculations will allow you to get a clear picture of what kind of home or mortgage is good enough for you.
2) Find the right City
You’ve selected Mississippi as your next home – that’s absolutely great! But it is a whole state, and your true challenge is to narrow down your location to a particular city.
Just like every other state, Mississippi has some pretty expensive and some not-so-expensive cities. For example, Diamond Head, Long Beach, Natchez, Biloxi, Ocean Springs are some of the most expensive cities in the state. Similarly, Crystal Springs, Forest, Waynesboro, Brookhaven, and Laurel are the least costly.
Depending upon your financial situation, you can select a couple of cities. It will narrow your search and let you progress to the next steps.
3) Find the Neighborhood
Once you have selected the city, it is time to find the right neighborhood within the city. Madison, for example, is an excellent place for families living with a nice atmosphere, decent price range, and small-town atmosphere.
Nevertheless, there are several aspects that you should consider before finalizing a place to settle in. This may include:
- Population, crime rate, and job opportunities in the area
- Schools, colleges, restaurants, and other amenities
- The overall atmosphere of the area
- Art or cultural scene
- Home values
Taking these factors into consideration will help you in choosing a lifestyle you prefer for you and your family and also help you in estimating the resale value of your property if you ever feel like selling it in the future.
4) Learn about the real estate market
Mississippi’s housing market is growing, and the prices are slowly rising. Over the next year, the prices are likely to increase by 7%, and the interest rates might also reach their all-time high.
The inventory (number of houses for sale) is not big in the area, but new constructions are ongoing in the state’s northwestern corner, such as Olive Branch, Hattiesburg, and Biloxi. This will help all the buyers in finding a home for themselves.
In short, it is essential that you research the real estate market in the area and discover places that match your budget and preferences.
5) Compare your Budget and Make Preparations
Currently, average home values are currently $123,200. Also, the prices are rising and have a spike of 6.5% during 2018 and will grow further. Not to forget, there are differences in monthly rental and costs in every city. For example, you can get a rental home in Olive Branch for almost $941 and $771 in Jackson, and so on.
Another step in making the preparations for getting a home is to get a pre-approval letter. This will make you an authentic home seeker and help you pay off your settlement. So, do some research, select a lender with minimum interest rates, and you can make a difference of thousands of dollars in your home’s total cost.
6) Find an excellent real estate agent in Mississippi
You’ve done the research, made your budget, communicated with a lender, and finalized a place to settle in. Now is the time to get professional help.
You can buy your home via real estate agents, or you can get the property in Auction. The former is a conventional method where you have to find a reliable real estate agent who will find and show you houses according to your requirements and make suitable recommendations.
For auctions, you have to choose the right agent, such as Auction Flippers, that can help you get the most profitable deal. They will assist you in finding houses, participating in the bidding, and completing all the formalities of auctions.
7) Home Hunting
Once everything is fixed, it is time to start looking for properties and conducting inspections.
Here are some of the factors you should consider while inspecting a property –
- Roof, septic system, drainage system
- Foundation, radon testing, termite inspection
- Electrical system
- HVAC system
- Plumbing, condition of tiles, walls, paint, etc
- Need for improvements, renovation, or modernization
Once you have seen the property yourself, it is recommended to ask for professional help that will inform you about any unseen or potential issues in the building.
8) Making the Offer or Winning the Auction
Once you have found the property you like, it is time to buy it.
If you are contacting the seller directly, you would need to make an attractive offer and go for negotiations. Your real estate agent will help you negotiate and fix the best deal for you.
If you are buying a home at an auction, prepare well for the auction day and make your bids as per your maximum budget limitations. If you win the biddings, you will have to sign the document, pay an initial deposit immediately, and the home will be yours!