It’s a good idea to be prepared for what you need to do in a competitive real estate market to lower your chances of losing out to another buyer and increase your chances of getting your dream home.
1. Know what you can spend. If you are obtaining a mortgage, get pre-approved. If you are paying cash, be prepared to show that you have an account with the funds waiting. Sellers want to see that you have buying power.
2. Stay in touch with your Realtor. Make sure that you are receiving up to date information on listings that are new on the market, have been reduced into your price range, or are back on the market.
3. Watch out for listings yourself. If you see a new “for sale” sign or find a home online, let your agent know immediately so that you can get an appointment to see it asap.
4. Be ready to make a decision. Know your wants and needs in advance so that are are sure that a home fits the bill to cut back on time wasted.
5. Offer Smart. Your agent will show you comparables so that you can make an educated decision. You don’t want to offer at the highest price you can afford, but you also don’t want to go so low that the seller chooses another buyer or just gets offended. Be competitive, or you can lose out in a tight market.
6. Keep your offer as clean as possible. Too many contingencies can scare a seller off. If you need a longer closing there are ways to get around that, possibly with a bridge loan. Try to be as accommodating as possible on other terms, such as closing date or repairs to help you get the sale price that you like.
7. Don’t jump the gun. Just because it’s a tight market doesn’t mean you should grab any home. Feel good about your decision and don’t neglect home inspections to ensure a sound home.