In a competitive market where housing demands exceed supply and there are more competitors buying homes, you need to be prepared to secure the property you want. In niche areas, sellers are at an advantage, and homebuyers may face high prices, bidding wars and more. Here are five tips for buying a home in a competitive market.
Work with an experienced real estate agent.
The first step to securing the property you want is working with a trusted real estate agent. An experienced real estate professional will be familiar with the local housing market and knowledgeable about the homebuying process, including negotiating, bidding wars and more. They will know what niche market properties will require in crafting a successful agreement.
Get pre-approved.
Before you begin looking at homes, meeting with a mortgage lender is vital. By providing financial information, your lender can determine if you qualify for a home loan. In turn, you can use your pre-approval letter to let sellers know you’re a serious, prepared buyer.
Without a pre-approval letter, many sellers may not entertain your offer as a serious proposal.
Make a clean offer.
In general, a contingency is a clause that homebuyers can include when making an offer on a home. The sale will not be completed unless specific conditions are met.
However, if you make a clean offer with as few contingencies as possible, your offer will stand out and appeal to sellers.
Prepare to make the best offer.
Next on our tips for buying a home in a competitive market is to be prepared to make the best offer. In a competitive market, many professionals will recommend offering 1% to 3% above the asking price. Your agent can help you determine your budget and draft a solid offer. This is not always necessary, and provides another reason to work with a local expert.
Put more down.
A strong earnest money deposit shows sellers that you are serious about your offer and can give you a leg up on the competition. In addition to the earnest money, putting more money down is another positive sign to the seller.
Summary
Do you need help implementing these tips for buying a home in a competitive market during your search? Connect with Ryan Roberts for a smooth real estate journey that leads to your dream home.
For more industry tips and local housing updates, continue reading our blog.
