9 Tips on Buying a Home in a Competitive Market
It’s not easy house shopping when the market is competitive. Here’s 8 tips to help make the process smooth and painless!
1. Get Pre-Approved
You need to be pre-approved if you’re shopping in a competitive market. Your offer will get last priority if the seller doesn’t have reason to believe you can afford the home – so find a lender and get pre-approved as soon as possible!
2. Find a Great Agent
A quality real estate agent can be the difference between closing the deal or losing it. Do your research and find someone with great local reviews who is available, trustworthy, and personable.
Another great way to save here is by hiring the seller’s broker as your buying agent (known as a dual agency or dual broker). Oftentimes you’ll get a discount for giving them extra business!
3. Be Organized
Get your paperwork ready ahead of time. Make sure your tax information, income verification, social security number, bank statements, and any other paperwork you need are easily accessible.
4. Be Diligent
Stay on top of all communications related to your home search, and regularly check the market. Sometimes all it takes is being the fastest buyer out there to seal the deal first.
5. Know What You Want
Do your research and know ahead of time the things you need in a home, and the things you want in a home. Don’t wait until the last minute to figure out your preferences and requirements.
6. Create a Heartfelt Offer
Make a unique offer by appealing to the seller’s connection with their home! Learn how to create a killer letter to include in your offer here.
7. Don’t Include Too Many Contingencies
Contingent offers are wise for first-time buyers, but in a competitive market, you might want to rethink how many contingencies you include. This makes it easier for the seller, which gives you a better shot at winning the offer.
8. Be Accomodating
Sellers don’t want the process to be any more complicated than it has to be. If you’re able to accommodate in areas that others aren’t willing to (ie. covering closing costs, taking care of repairs, making a generous earnest payment), you’ll have better luck with your offer. Be kind and remember – this process is stressful for the seller, too.
9. Make a Great Down Payment
A surefire way to have your offer get top priority is to provide a hefty down payment. If you’re not able to afford this on your own, use a trustworthy partner like Home.LLC to invest in your down payment (rather than using a high interest loan). Even if you’re financing the rest, you can still make an all cash offer – which makes you an appealing buyer.
All in all, your best bet is to be organized, diligent, accommodating, and patient when buying in a competitive market. It will take longer to find your perfect home, but by following these simple tips you’ll give yourself a better chance at closing the deal quickly.