Let’s face it – buying a home in a hot housing market is no easy task. In the past year of 2017 we have seen a short supply of homes available. The year of 2018, doesn’t promise to be any better accoring to Lawrence Yun, NAR’s chief economist.This of course creates stress knowing that you need to compete with other Buyers to win the deal!For example, if you wait too long to submit an offer on a house, you risk losing this residence to a rival buyer. On the other hand, if you rush to submit a home offer at or above a seller’s initial asking price, you risk spending too much to acquire your dream residence.
Clearly, there’s a lot to think about as you search for a home in a hot housing market. Lucky for you, we’re here to help you overcome myriad home buying hurdles and acquire your dream residence, even in a hot housing market.
Let’s take a look at three helpful tips to help you succeed as a home buyer in a hot housing market.
1. Narrow Your Home Search
In a fast paced market it is extremely difficult stay informed and up to date on ALL of the homes that become available. You can find your self rushing from town to town, putting in offers only to be beaten out by someone who has had a laser focus on the community, knows real estate values and will write offers accordingly.
By narrowing your focus it will enable you to become an expert in your chosen town, and get to know the “pulse of the market”. You will need to create a list of what type of home you want, your must haves and wants, and of course your appropriate price target. This will help speed up the home-buying process.
Once you have a home buying checklist in hand, you should have no trouble evaluating residences in a hot housing market. Then, you can check out these houses in person a with a qualified Realtor and move one step closer to submitting an offer to purchase for your dream house.
2. Get Pre-Approved for a Mortgage
This is huge…!
To acquire a home in a hot housing market, you’ll likely need a mortgage. It is most important to have a pre-qualification in hand prior to making any offers. All Sellers will be looking for this to be submitted in conjunction with the offer. If you are able to get a pre-approval that is even better.
What is the difference between a pre-qualification and a pre-approval? A pre-qualification shows that you have basically discussed numbers with a mortgage representative and provided basic information about employment. The pre-approval shows the seller you actually have financing in place, have gone through the approval process with a lender of your choice and are just waiting to find the perfect home. This can be most appealing to a seller who could have the luxury of reviewing multiple offers and wants to choose the one with the least amount of risk.
There are many qualified lenders available that can teach you everything you need to know about a wide range of mortgage options.
Lenders can explain the differences between adjustable and fixed-rate mortgages, describe exactly how a mortgage works and much more. That way, you can assess many mortgage options and select one that matches your finances.
After you obtain a mortgage, you can enter a hot housing market with a home buying budget. This will enable you to further accelerate your home search and ensure you can quickly submit an offer as soon as you discover your ideal residence.
3. Collaborate with a Real Estate Agent
This is most important!
Navigating a hot housing market can sometimes can be tricky, particularly for a home buyer who is competing against dozens of rivals. It is always best to hire a qualified real estate agent. A good agent can help with comprehensive support as you pursue a home in a hot housing market.
Try and seek out an agent that has experience in representing Buyers.
This agent should be able to provide not only information on the home you are interested in, but also vital stats on the town, the neighborhood, schools etc. You should also ask your agent to provide a specific value evaluation on the home you are considering, which can guide on the dollar amount of your offer . Having this information can be key to understanding values and to assure you are making an educated bid to capture your dream home.