With mortgage rates dropping to historic lows starting in 2020, buyers and investors clambered to take advantage of the opportunity to borrow money at relatively low expense to purchase homes. That rush by buyers and investors helped drive up home prices as competition became fierce. Over time, the rush of buyers almost completely depleted the available housing inventory in markets across the country—whether small-town North Dakota or downtown Boston. Two years after the rate drops, home inventory is lower and prices are higher than they have been in recent history, which makes the market challenging for buyers to navigate.
But it’s not just the unusual housing market causing issues for buyers—homebuying can be confusing for buyers in any market because there are so many moving parts to consider. Buyers have to narrow down their options to the right neighborhoods or ZIP codes and determine the right offer for a home, which can be tricky, too. In this market, if a buyer offers too low of a price, it can knock them out of the running completely. On the flip side, too high of an offer can cause a buyer to exceed their budget.
So how does a homebuyer know what to focus on when searching for their dream home? Real estate platform ZeroDown analyzed real estate listings and compiled a list of 10 key terms to pay attention to when browsing for a home in Florida online. Understanding these terms will help homebuyers ask important questions and make informed decisions.