Hot Real Estate Market? No Problem!Share
Most real estate markets around the country have rebounded nicely, and sales are brisk. As a buyer, you might experience some issues with inventory in your area due to a smart sales environment. You can still find and close on the home of your dreams, but doing so could require you to alter the way you approach the sale. To help you score your home in a hot market, read below for some tips.
Consider Making Higher Offers – Most buyers just assume that sellers will expect and welcome a bit of negotiating. In a highly competitive market, however, buyers may need to rethink that strategy. When inventory is low, and there are more buyers than homes available, you might want to sweeten the deal by making offers at or above the asking price.
Before you make an offer, speak with a real estate agent to find out about the appraised value of the home. While homes can sell below, at, or far above an appraised value, if you need lending, the amount of the loan cannot exceed the value. That means having a down-payment that takes the lending and price into consideration. An agent can also tell you whether or not a given home already has offers pending, and if so, how many. They cannot, of course, tell you the amount of the offers.
Give the Seller More Reasons to Like You – Sellers want to not only sell their home at a decent price but also to see the deal go through to the closing. Part of that incentive is up to you, and it has to do with your lending. Getting preapproved is more important than ever since you want to be able to move fast if a home becomes available. It can only help matters when a seller recognizes a buyer that is serious and qualified to complete the deal. Another positive attribute of a good buyer is offering a large down-payment. The larger the down-payment is, the more likely the buyer is to have their offer accepted.
Be Ready to Compromise – With less inventory available, perfect or near-perfect properties are not going to be in abundance. You might have to be flexible on things like location and be willing to do some fixing up to score the home. That can also mean curbing those contingencies in the contract. The less hassle for the sellers, the more likely they are to accept your offer. While this does not mean forgoing a home inspection, it might mean being more forgiving of a home's minor issues.
To get more information about buying a home when market conditions are hot, speak to a residential real estate agent.