The home buying process can be stressful. It can also be highly rewarding. If you’re buying a home in a hot real estate market, you might find it harder with greater rewards. Other high-demand housing markets often come with their own unknown rules that could be tough for home buyers to adapt. Homes in some parts of the country are only on the market for a day or two. Buyers are left with little or no time to locate their dream homes, bid and win their negotiations. We have a few key home buying tips for you when searching in a hot market.
Get pre-approved.
Most homebuyers today still go out for home shopping without being pre-approved for a mortgage. One of our biggest home buying tips is to get pre-approved before you search. You need to understand the difference between pre-qualification and pre-approval. Being pre-approved for financing means you’ve met with a lender and your credit has been examined added to other expenses which help to determine what you can afford for a mortgage with their underwriting guidelines. Being pre-approved can as well help in making the right offer.
MORE: Pre-Approval vs. Pre-Qualification
Make a competitive offer.
One of the most stressful and intimidating parts in the home buying process in a high-demand real estate market is the ability to make a perfect offer for your dream home. You need to choose the right offer as going to high or too low can problems for you. Working together with a quality realtor can give you a distinct advantage. With our Pre-Approval advantage we give you the leverage you need to make your offer with confidence.
Avoid a contingency based contract.
A good number of real estate agents will advise you on using the contingency on your buyer’s offer. Most of the time it will get the offer to the lowest amount possible. Although it is certainly needed at times, such contingencies like selling your home before closing on the other one is certain to turn off sellers. You should understand the real estate market of today has very little inventory on a national scale. Not all markets are the same. A strong offer tells sellers you are serious in every market condition. It also shows that you are and more likely to get the deal done.
Look at using an Escalation Clause.
As an extra strategy to help buyers survive in a tight real estate market, the escalation clause can be put to use when submitting an offer. This can play the role of outbidding other competing offers without having to overpay. While this is a bold strategy it can pay off. We highly suggest speaking with both your realtor and our team to make sure this is necessary.
Insist on home inspections.
In the battle of who’s offer gets accepted, some buyers consider ignoring or waiving the home inspection. This can speed up the buying process and make the seller find their offer more attractive. I no way should you waive an inspection. This is almost always a mistake. No matter how good the house may look on the surface always get the home inspected. You never know what might be lingering where you can’t see it.
As always, contact us with any questions! We are here to help.
