Helpful Tips When Buying in a Competitive Market
Buying your dream home for a comfortable price can be a bit of a struggle in a seller’s dominated market. If you bid too low, you risk losing the property to other bidders. If you bid too high, you risk spending more of your budget then planned, in turn, making your move 10x more stressful then need be! Here are a few helpful tips on how to buy the home you want in a competitive market.
- First things first are to Prequalify your mortgage. Sellers tend to feel more comfortable negotiating with someone who can prove their dedication, with both intent and ability, to purchase their home. Being able to make that firm commitment to buy makes your offer a lot more desirable to the seller.
- You also want to stay in close contact with a realtor. As an agent, it is their job to be on the lookout for any new listings hitting the market that meet your criteria. Be ready to see a house as soon as it goes on the market because all good homes go first!
- Be sure you are ready to make a decision. It’s important to spend plenty of time in advance deciding what you can afford, your must-haves, & needs in a home that way, you are ready with a timely offer as soon as you locate the property that is right for you.
- Contingencies, Keep these to a minimum. Restrictions such as needing to sell your home before you move can make your offer or delaying closing to a specific date is unappealing to some sellers. Remember that, if the market is tight, you’ll more than likely be able to sell your house very fast! You could also talk to your lender about getting a bridge loan to cover both mortgages for a short period.
- Lastly, Beware of buyer’s frenzy! Just because there’s a lot of people interested in a home doesn’t mean you should buy it so don’t get caught up in the competition of bidding. Especially if winning will end up costing more then you’d like to spend.