How You Can Buy in Today’s Market
Four tips that can help buyers compete in today’s competitive market.
Today we have four tips to help you keep your hair on while shopping for a home in today’s market:
1. Meet with a real estate professional beforehand. Don’t wait until you’re already touring homes and writing offers. Use the time before you start your search to discuss with them what’s important to you about this move and why. A good agent can take all that information and help you align your money and motivation with the current market.
If this is your first time buying a home, that agent can also go over the general process and the tasks you’re required to complete as a buyer, like depositing earnest money, signing documents, and ensuring your lender has all the information they need.
"A good agent can help you align your money and motivation with the current market."
2. Speak with a qualified mortgage lender. This is your next step in the home-buying process. A lender can get you pre-approved for homes that fit your monthly payment limits, which will save you time in the long run. Additionally, being pre-approved makes your offer much stronger and gives the seller confidence that you can afford the home.
3. Know your contingencies. It’s common in a seller’s market to see offers with few to no contingencies. These types of offers are typically more attractive to sellers, but you need to know the risks associated with waiving your contingencies. It can be risky to waive your inspection contingency if you don’t have a pre-inspection to rely on, and it might not be the best idea to waive your appraisal contingency if you’re not in a financial position to pay any appraisal gap. Lean on your agent to fully understand the risks and help you decide which you want to waive.
4. Expect a multiple-offer situation for new listings. There will likely be multiple offers for any homes that have been on the market for a week or less, especially if they’re priced correctly. If you want to avoid bidding wars, you can look at homes that have been on the market for around two weeks. These homes will have less competition, and the seller may be more willing to negotiate.
If you have any questions about these tips or want to hear some more, call or email us. We’d love to hear from you.