How to Buy a Home in a Competitive Market

Posted by Justin Havre on Friday, February 1st, 2019 at 10:16am.

4 Tips For Buying a Home in a Seller’s MarketOver time, the housing market fluctuates and changes, and this can sometimes lead to a competitive market. One particular market is called a seller’s market, and this occurs when there are more people looking for homes to buy than there are homes for sale. Buying a home in a competitive market like this can be tricky due to the scarcity of homes, but it isn’t impossible so long as the buyer knows how to increase their odds. Here are some of the different strategies home buyers can use to help beat out the competition and land the home of their dreams.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Be Ready to Move Quickly

In any type of competitive market, time is of the essence, and wasting time can mean missing out on homes. Buyers need to keep their eyes open every day for new Windsong home listings and arrange to attend a showing as quickly as possible. If the market is especially competitive, homes can be sold in a matter of hours, so there’s no time for buyers to wait until the weekend to see homes. If a buyer wants to have a good chance at getting an offer in on a home, they need to make sure they’re staying on top of everything or they’ll risk getting left behind.

Be Prepared to Settle on Some Features

Even in a normal market, it can be difficult to find a home that meets 100% of the buyer’s expectations. However, during a seller’s market, buyers can’t afford to be picky. Buyers need to separate what they want to have in a new home from what they absolutely need in a new home and focus on the needs. A need can be something like a first floor bedroom, while a want can be something like hardwood floors instead of carpeting. Remember that the kitchen counter can be replaced after the home is purchased, but the laundry room can’t be moved to make it more accessible, and look at homes accordingly. 

Be Preapproved for a Loan

Before a buyer starts looking for a home, they should take the necessary steps to get preapproved for a loan. Being preapproved can help a lot later down the line because it gives the buyer written permission from the lender that they are allowed to borrow a certain amount of money for a home loan. This written permission can be included with an offer to show a seller that they are serious about buying the home and are well prepared. Getting preapproval beforehand also means that should the buyer’s offer be accepted, they won’t have to wait for approval later on, which can potentially be a turn-off for sellers who want to complete the sale as quickly as possible.

Make the Best Possible Offer

Once a buyer has found the home that meets their needs, it’s time to put in an offer. However, buyers need to remember that this is a highly competitive time, so their offer won’t be the only one the seller will be considering. Because of this, the buyer needs to ensure that their offer stands out from the rest, and in order to do this, they need to pull out all the stops and make their first offer the best offer so it doesn’t get passed over. This can be done by offering more than the asking price, including a personal letter about the home, or even including an escalator clause to keep up with other offers.

Buying a home during a competitive market can seem intimidating, but for buyers who know what to do, it isn’t impossible. Following these tips can help buyers buy a home, even when the competition seems too steep.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

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