Being an active buyer searching for a home these days can be a real challenge with so few homes on the market. “Attempting to purchase a house in this type of market can make the already complex process of buying a home even more overwhelming,” the National Association of REALTORS® notes in a recent release. To assist with this challenge, here are NAR’s five recommendations for how to prevail in a competitive market.
Work with a Realtor
Always work with an experienced real estate agent like myself as I can provide expert advice and help you navigate a competitive offer situation. “They can give buyers the competitive advantage needed in a tight market,” NAR states.
Prepare to act quickly
Most properties today are not on the market for many days as it is a seller’s market. Don’t waste time when the right property comes available. Move quickly if you are interested in seeing the home and submitting an offer.
Wants versus needs
There is no such thing as the perfect home. There is usually something that has to give where you make a compromise, even if it’s as simple as paint colors to match your taste. However, in a competitive market you may need to decipher what is a “need” and what is a “want” so that you can locate a home that can be most accommodating.
Keep to your budget
“When listings are scarce, bidding wars can drive up prices, so buyers must be prepared to walk away if the asking price surpasses their budget,” according to NAR. Always make sure that as a buyer you get pre approved by a qualified mortgage agent and stay within your comfortable budget so you can avoid letting any emotions drive you to overspend.
Make your offer competitive
Low offers don’t usually prevail in a seller’s market. Starting off with a stronger offer is better as there can be additional offers on the table. Remember to also limit your contingencies as that is also part of your offer’s value. “Removing restrictions related to the sale of a current home and being flexible with things like the move-in date can make a bid stand out to a seller,” NAR notes.