A hot real estate market means home inventory is low and competition is high, making it harder to get an offer accepted. As a buyer, this can put you on an emotional rollercoaster, as you’ll have more purchases fall through than when the market is cooler. To help you navigate through a hot real estate market, here are a few tips for buying in a seller’s market.
Get an Idea of the Market
The first step in navigating a hot market is to do your research. Spend some time researching your local neighborhood by both walking the area and looking online. Things to look for include:
- How long homes are listed before a contract is pending
- How much homes are really going for compared to their listing prices.
- How many homes are for sale in your area.
- Are there any housing developments going on in your area?
Doing your research means you can get an idea of how hot the local market is without the pressure of feeling like you need to make an offer.
House buying should be more like choosing a new cat food than dating. You need the cat food, or your cat will go hungry, but you don’t have an emotional stake in the game, so you can be more objective in your choices.
Falling in love with a house and making the decision an emotional one can mean you overlook problems that can come and bite you in the future, and suffer more heartache when your offer gets refused.
Find a Good Real Estate Agent
Nothing will help you more when it comes to navigating a hot market than a good real estate agent. You’ll want to work with someone who’ll alert you to listings as soon as they hit the market, or ideally before they hit the market.
You’ll want someone who knows how to negotiate, knows their businesses and the area, and is able to make your offer stand out from the ground.
When it comes to choosing a realtor, you should interview more than one agent, and don’t hesitate to ask for references and then actually check them.
Expect to Compromise
The reality is, in a hot market, there might not be any properties available that fit your criteria. If that is the case, you have two choices.
You can either hold out for ‘the one’ and possibly never find a house in the area you want. Or you can compromise on certain aspects of the property and get onto the property ladder that much quicker.
Think about what’s most important to you now and prioritize that, be willing to compromise on the stuff that’s not so important.
Have Your Financing Lined Up
Before you start looking at houses, make sure you have all your financing lined up. Compare mortgage interest rates from several lenders, and get a mortgage pre approval from two or three lenders.
When it comes to buying a home in a hot market, turning up to a viewing with pre approval from multiple mortgage lenders shows that you’re serious about buying a home.
Northwest Realty Group is committed to making sure you are living your “happily ever after” in your dream home. We’re here to help you make home buying and selling an easy and enjoyable process from start to finish. Our agents will work closely with you every step of the way so you can have peace of mind knowing that we’ll be there for any questions or concerns you may have. If you want to buy or sell property, then contact us today at 702-677-0039!