Buying in a tight real estate market can be problematic and extremely discouraging. Options are low, and competition is high. With the right advice however, it’s possible to tackle the tight market and come out on top. By following these five pieces of advice, buying in a tight market will be easier than you ever imagined.
1) Get yourself Prequalified for a Mortgage
• Getting prequalified for a mortgage will allow you to firmly commit to a seller. It will also make your offer more desirable. Not to mention, it’s an effective way to stay ahead of the competition. Also make sure to get a loan application as fast as possible.
• Get your down payment ready so that you can close quicker than other buyers interested in the same home. And, always put down at least ten percent. Sellers are usually wary of buyers who can’t put down at least ten percent.
2) Stay in Close Contact with Your Realtor
• You’ll want to be ready to see a new house as soon as it goes on the market, so stay in touch with your realtor. Great homes will go fast, so you want to make sure you’re one of the first to see them.
3) Look for New Listings on Your own Time
• It never hurts to do some research on your own. Look through local newspapers to see what listings catch you eye. The Internet is also a great place to scour for listings. There is no harm in searching for homes alongside your realtor. The more homes the two of you discover, the more options you’ll have.
4) Make your Offer as Clean as Possible
• It’s always best to keep contingencies to a minimum when you are writing up your purchase agreement because sellers don’t like them. It’s also important to familiarize yourself with the paperwork you’ll be filling out. Be as prepared as possible so that you can make the process easy for the seller – they’ll appreciate that. Consider adding an escalation clause in case of competing offers.*
5) When you Find the Right Home, Act Quickly
• Remember, there are likely a number of other buyers looking at the same homes as you, and chances are, many of them will want the same house as you. Don’t waste time, this will only allow other buyers slide in and get the home. Sign an offer as quickly as possible and present it to the seller as soon as possible.
• Taking the time to think it about it over night will likely cause you to lose a home. Know what you’re looking for in advance so that when the house finally comes around, you won’t need time to think it over. It’s also wise to include a family member or close friend in the process. Make sure they know exactly what you’re looking for in a home. This way, if you happen to be out of town when the perfect house comes along, your comrade will be able to go to the showing for you and inform you about the house, allowing you to fax in an offer from wherever you are.
While buying in a tight market might seem frustrating, by following the right advice, the process can actually be quite easy. Make sure you know exactly what you’re looking for ahead of time, and get prequalified for a mortgage immediately. Remember to put down at least ten percent, because a buyer won’t give you a second thought if you put down anything less. As always, your realtor will be with you each step of the way, so make sure to work closely with them. Happy house hunting!
* Contact your realtor to have them explain this to you