You’ve repeatedly heard that real estate has been booming for the past year. Interest rates are low, and home prices increase as buyers move into new homes. Though a hot market is great for sellers, it sometimes bodes poorly for the average buyer. It has caused many to ask: How can you stay competitive and eventually purchase your dream home in a real-estate environment where prices are rising faster than ever before? The housing market is competitive, so to give yourself the best chance at landing your dream home, we’ve rounded up a few tips to help you get ahead of your competition.
Prepare Yourself
Buying a house in a competitive market means you’ll need to move swiftly and make quick decisions. So before jumping into the deep end, take some time to prepare yourself—both mentally (read up on things like interest rates) and financially (look at homes that fit your budget). Visiting open houses, touring homes virtually, and deciding what kind of home to buy will help you become familiar with local real estate prices and make you feel more confident. When the time arrives to make an offer, you’ll be able to consider all your options—and avoid making mistakes that could cost you later.
Get Your Finances & Papers in Order
The better your financial picture is when entering the home-buying process, the more attractive you will be to sellers. Before you begin your home search, meet with a financial advisor to ensure that your finances are in order and that you have enough money saved for the down payment. Pull your credit report and ensure no major gaps could be called into question later. And gather other documents you’ll need to help make it easier on yourself down the road: income verification, bank statements, address history, debt information, and more.
Assess Your Wants & Needs
When moving into a new apartment, one of the first items you should do is make a list of what you want and need from an apartment. When considering whether or not to buy a home, you should ensure that the things important to you in your new living space align with those factors. The cost is the most important factor if you need an extra bedroom to accommodate your growing family.
Get Pre-Approved
Most buyers need financing to purchase a home, and if that’s your situation, it’s important—especially in today’s market—to get pre-approved for a mortgage before you start looking. Pre-approval for a loan can help you to negotiate more effectively with sellers.
Find a Great Agent
Finding a good Realtor to help you through the home-buying process is arguably the easiest and most crucial part of buying a house. No matter who you pick, they’ll be able to find new listings for you and show those properties. They can also act as a liaison with the seller’s agent and answer any questions about the process.
Be Ready to Move Quickly
We’ve seen homes spend less than 12 hours on the market before eager buyers in this current real estate climate snatch them up. Therefore, you should begin researching real estate immediately after discovering an attractive location. Because you’ve done so much preparation, tough decisions should be easier to make—and your agent will help.
Make Yourself Stand Out
Making a competitive offer is one way to make yourself stand out among other people fighting tooth and nail for the same home. Sellers are often willing to offer a higher price, accept a bigger down payment or be flexible about closing dates when they know the buyer is motivated. That is why it’s important to have a solid plan in place before you begin shopping. If you’re unsure what to do, talk with a real estate agent or mortgage lender who can help you make sense of the market.
Stay Flexible
One way to set yourself apart from other potential buyers is by being as flexible as possible. Ask your agent if there’s anything you can do to make the seller more likely to accept your offer. Perhaps they want to stay in their home while looking for a new one. They may want to keep the appliances or other personal items important to them before making any major changes. By working with your clients on these issues, you can show how flexible and understanding you are.
Keep Trying
It’s important to keep trying, even though you may not find your dream home the first time. Inventory is very low, and homes sell fast when they become available. Although you may include waiting a while before finding the perfect house, it’s worth your time and effort. Keep putting in offers on houses, and keep looking at them until one is accepted. If you find a house you like and make an offer, but the seller turns it down, start looking for another home. Finding one that fits your needs and wants may take time, but eventually, you’ll succeed.