Hot Tips to Prep Yourself to Buy in a Hot Market
You’ve made the decision to buy a new home this spring, only to find that houses in the area/price you want are selling in hours. How do you prepare? Here are some tips to get you ready to act confidently and snag your dream home.
- Be pre-approved for the purchase price of your home, and have all financing figured out. Also, in situations where there are multiple offers, it’s important you are working with a very reputable lender. Buyers will look at this to make certain they are confident your offer will go through.
- Make sure your realtors have you set up on a proper search and you are being notified the second a house comes on the market in your criteria. You need to see when a house comes on the market quickly to have your fair chance to act. This includes making sure your realtor understands exactly how you want the search set up.
- Make yourself available to look at homes right away. You, your partner, someone you really trust- get in there as soon as possible so you can make a decision on an offer.
- Be knowledgeable of the market so you can be confident writing an offer quickly. If you are familiar with what similar homes are selling for in the area, you will feel ready to give a higher offer when multiple offers will be suspected.
- Be emotionally ready. It’s tough to put in offers and lose out, but this is a reality in certain neighborhoods and price ranges. Something will work out for you, really it will, sometimes it just takes patience and a little good humor at the chaos.
- Visit neighborhoods now that you are considering and be knowledgeable of the area. For example, you may go look at a house in the evening and need to write an offer that night, but haven’t seen the neighborhood during the day. Doing your homework ahead of time will lessen the stress of this type of situation.
- Know that your offer is contingent on an inspection. Don’t feel the pressure to understand every structural nook and cranny and potential problem in a home. Your realtor can advise on the basics, but the inspection period is for you to professionally vet the structure and any issues.
- Consider writing a letter to stand out. It doesn’t work for everyone, but we’ve seen buyers win homes in bidding wars based on a personal letter.
- If you are in a sellers market, don’t expect to get an amazing deal. You’re getting your dream neighborhood, but it won’t come at rock bottom prices. Your realtor is your market expert, and they will know the situations where a low offer is just not going to cut it. Hot markets often mean paying over asking price, simple rules of supply and demand.
- Know exactly what you will compromise on. If you’re buying with a partner, have super frank discussions on what you both expect. Decisions may need to happen quickly and you don’t want to be faltering in the moment.