7 Pro Tips for Buying in a Tight Market
Everyone's aware of how tight the real estate market is right now. Whether you're looking to take advantage of interest rates, are buying your first home or upsizing to the home that fits your growing family, it's a challenge to find the right home for you.
Here are some things to consider when getting your strategy in place.
1. Get pre-approved
It is almost unheard of right now for a seller to accept an offer without the buyer being pre-approved. It’s easy, doesn’t cost anything and you’ll have a plan.
2. Stay in close contact with your Real Estate Broker
He or she will know the minute your dream home comes on the market. Be ready to schedule a visit asap.
3. Scout out new listings yourself
Browse your favorite sources online, set up alerts with your favorite website and definitely drive the neighborhoods you’re interested in. When you see a sign go up, call/text your broker with the address and listing agent's information. There’s something to getting there first.
4. Be ready to make a decision
Spend plenty of time in advance deciding what you can afford and must have in a home so you won’t hesitate when you have the chance to make an offer.
5. Bid competitively
Your first inclination may be to start out offering something less than the absolute highest price you can afford, but if you go too low in a tight market, you will likely lose out.
6. Keep contingencies to a minimum
Restrictions such as needing to sell your home before you move can make your offer unappealing. Remember that, if the market is tight, you’ll probably be able to sell your house rapidly. You can also talk to your lender about getting a bridge loan to cover both mortgages for a short period. If your agent is experienced, they can help you with a strategy to sell and buy without making two moves.
7. Don’t get caught up in a buying frenzy
Just because there’s competition for a home doesn’t mean you should buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure the house is a sound investment. Get your agent's opinion on what is a maximum offer price and ask why.