Are you trying to buy a home in a hot real estate market? Or do you continue to fail at buying a home and wonder how to buy a house in a competitive market?
Well we found some useful tips for you to use the next time you place an offer on a house.
So how do you buy a house in a competitive market? Follow the steps below.
Get educated
There is no reason to invest in a home if you’re not willing to put in the work in learning about property ownership. Begin by taking courses that highlight the basics associated with owning a house. Then, do a bit of research on the community in which you want to live.
Understanding market trends in your desired neighborhood is also important. This will help if you need to bid for more than the asking price. Or maybe you might get a deal below the asking price.
Separate needs from wants
Sure, you want a three-car garage with a balcony overlooking the hill. But can you really afford those luxuries?
Figuring out your necessities and your budget is something you need to do before you start to look at houses. You shouldn’t even visit a bank before determining how much home you can afford.
Get preapproved
Several years ago the experts would have told you that getting preapproved for a home loan was a waste of time. Now, the same experts are want you to get financing before looking for a home.
Preapproval tells sellers that you are serious about purchasing property. They won’t have to worry about the deal falling through because you already have the money to buy the house. Sellers tend to select preapproved candidates over the other potential buyers.
Find a great buying agent
It is never a good idea to interact with the listing realtor in the absence of your personal agent. The listing agent is only concerned with selling the property.
Your realtor will make sure that you get a fair deal. Selecting an agent with experience and tenacity is key to finding and buying the right house.
View the property sooner rather than later
There is no room for procrastination in a seller’s market. While you think about viewing a property, another buyer has already seen and made an offer for the home.
It’s in your best interest to make your schedule flexible so that you can take a tour of the prospective home at the seller’s convenience. On average, responding to a potential seller within 24 to 48 hours is the best way to be competitive in the market.
Visit the neighborhood at different times of the day
A community always seems to be on its best behavior on a Saturday morning. The same neighborhood can be a disaster at night. It is always a good idea to drive through a community several times during the week to get a feel for the area.
Also, consider getting out of the car and talking to your potential neighbors. Their opinions will tell you if the neighborhood is the perfect fit.
Buy what you love
Compromising here and there is okay. Settling for whatever comes around is not acceptable. After determining your necessities, make the choice to not settle for anything less than what you need.
Do not force the kids to share a room in hopes of either selling or adding on to the house. That has the potential to lead to sibling wars (and headaches for you). Having emotional attachment to a home is the best way to buy property that you and the family will love for many years.
Make a lucrative offer
This isn’t the time to try to strike a deal or get a discount. You are buying in a competitive market. Offer the seller no less than the home’s market value and be willing to bid more if necessary.
Let creativity flow
Yes, it is possible to be creative even when bidding for a home. Consider giving the seller a personal letter that explains why their home is right for you. This will help you stand out, and it might give you a better chance of getting the house.
Get a pre-inspection of the property
Just because you’re in the middle of a bidding war, it doesn’t mean that you should forgo wisdom. Have your realtor schedule a pre-inspection of the property before signing any paperwork.
Most sellers are aware of pre-inspection practices. They won’t move on to the next candidate because you want to have a professional take a look at the structure.
