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Homes continue to sell at a record pace and often well above the asking price. Inventory is shrinking too, making for a fiercely competitive landscape.
Attempting to buy a home in this kind of market can feel impossible. But don’t give up! There are proven ways to gain an advantage, even in this extraordinary housing market. Speed is crucial so you’ll want to move quickly once you find a property you like.
Read on for six more helpful home buying strategies for winning in today’s competitive housing market giving you that much-needed edge.
1. Choose an experienced, trustworthy realtor.
Finding a reputable, professional real estate agent is one of the most important things you can do. Start by doing ample research and checking out reviews from past clients. Look for someone who is familiar with the market, not just someone you feel comfortable with. Each agent has different areas of expertise and various professional networks that can be advantageous when submitting an offer. Finding an experienced agent also goes a long way in protecting you as the buyer. Make sure your realtor has a thorough understanding of real estate contracts and has the wherewithal to safeguard your interests throughout the process.
2. Get pre-approved.
Before you even think about making an offer on a property, you’ll need a preapproval letter. This document from a lender indicates how much of a mortgage you qualify for, and consequently, how much you can offer on a home. There’s no point in wasting precious time looking at properties you can’t afford. Plus, preapproval letters are basically a requirement for making an offer because they show the seller that you’re a serious buyer with the means to pay what you’re offering.
3. Expand your search area.
Area growth is likely to keep pace with the market, which means that the outskirts of town could be booming in the next few years. Consider widening your search to include nearby locations. You may just find larger properties and better prices.
4. Don’t get into a panic-buy situation.
Because buying in today’s market is so competitive, it’s possible that you may have to compete against dozens of other offers. Be prepared for this situation by setting a hard and fast limit on how much you are willing to spend. Then stick to that amount. It can be hard to resist the urge to outbid others if it means securing your dream home, so do your research in advance to make sure you don’t go overboard.
5. Be flexible.
Shopping in a competitive market can be discouraging, especially if you’re uncompromising. When prices are high and inventory is low, it may be necessary to make some concessions. Start by ranking your top three or four must-haves. This might include a spacious yard, good schools, ample bedrooms, and proximity to public transportation, for example. Once you’ve identified the things you can’t live without, it gets easier to let go of the ‘nice-to-haves’. Keep the list handy to remain focused on your priorities as you go about your home search.
6. Put down a sizable amount.
Interested buyers usually submit what’s known as ‘earnest money’, representing about 5% to 10% of the purchase price, along with their bid. This is another way to demonstrate to the seller that you’re a serious buyer. But more important than the earnest money deposit is the size of the down payment you’re offering. The more money you’re able to put down, the stronger of a buyer you are considered to be and the seller will be more likely to accept your offer.
Making a successful offer on a home starts long before you even begin shopping. Do you have questions about these tips or would you like more information? The professionals at Certified Title are here to help. Please contact our experienced team today.
About Certified Title Corporation: Since 1994, attorney-owned Certified Title Corporation has been furnishing residential and commercial real estate stakeholders across the nation with robust title insurance, settlement, and escrow services. Renowned for industry-leading reliability and an exemplary level of service and quality, the Maryland-based company helps clients from all walks of life achieve their asset goals. To learn more, call (888)486-5511 or visit https://www.certifiedtitlecorp.com/.