They say that shopping for a home in a hot seller’s market is like trying to win a date with a celebrity. You need to stand out and impress the date or rather the home seller in the case for you to gain the upper hand. Well, more often than not, gaining the upper hand means spending more money, but this does not guarantee the number one spot. If you are not prepared to close the deal, you are unlikely to get the house, even if you have the money. So, in a hot seller’s market, proving that you are ready, qualified and serious plays a key role in successful home buying.
Buy A House in a Sizzling Market
Before we can dive into the tips of buying a house in a hot market, it makes sense to explain how to determine a hot real estate market. So, here is how you tell if the market in your region is hot:
1. The houses are selling faster than usual- within a few days or week of being listed
2. There’s a clear upward trend in the home prices. You’ll notice that each comparable home sells for a little more than the previous one.
3. There are fewer houses for sale in comparison to the previous year.
4. Lastly, the final selling prices are near or higher than the asking prices
Working out your borrowing power, or even getting finance pre-approval will certainly help, but not so much in a hot seller’s market. So, how do you gain a competitive edge to secure a home in a fast paced market? These tips will be of great help:
Avoid Being Cute With Offers
Fast-paced markets are neither the place nor the time to start long drawn negotiations with lowball offers. You will only be risking annoying the seller and giving other buyers a chance to get involved. So, do your homework and write a contract that is both realistic and enticing to the seller.
Leverage Your Relationships
An excellent way to stand out of competition is by gaining exclusive access to homes for sale through established relationships with the real estate agents. Of course, cultivating these connections might take years, but you can also leverage off the relationships built by expert buyer’s agents active in the market, and you will gain access to the off market sales.
Be Ready To Act Quickly
In a slow market, you will certainly view the property and then go home to do the numbers or even talk with your partner and organize for a second look. Well, this is one mistake you will need to avoid in a fast-paced market. There’s no time to look for alternatives or think for days if it’s the right decision. By the time you are making your mind, a more prepared buyer will have already bought the property. So, if you know what you want, got your finance pre-approved, and have done your research, make an offer as soon as you find the ideal property.
These are obviously not the only tips, but they are the most important and will certainly keep you on the edge of competition. Always be prepared, and you will secure your dream home even when the market is hot.