4 Tips for Buying a Home in a Competitive Market

In a competitive market with more buyers than homes for sale–also known as a seller’s market–buyers may feel like their chances of purchasing a home are slim. Buying a home in a competitive market, no doubt, is more difficult than it would be in a buyer’s or neutral market, but it’s still possible to find and close on a home. With a little patience and some market know-how, increase your chances of finding and buying a home in a competitive market.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

View Homes Quickly

In a competitive market, sellers can agree on an offer on the same day they list the home. Because of this, buyers can’t wait to go to home showings. They must contact their agent to arrange a showing appointment if they see a home they like. And not for the weekend, but as soon as possible. Make the time! Prioritize seeing homes over other activities whenever possible. If a buyer waits too long, they risk missing out on great homes before they even see them. Nationally, homes were on the market a median of 29 days during 2023–that hints that it’s much shorter in some places! Imagine a home off the market in under a month.

Be Preapproved for a Loan

Regardless of the local real estate market conditions, buyers should always be pre-approved for their loan. The approval process can take several days to complete. If a seller is trying for a fast close, then they will prefer a buyer who can bring funds to the table or is already approved. Getting pre-approved with a lender is an easy process. To get started, the buyer will select a lender to work with. The application will ask for the amount the buyer wants to borrow and their financial credentials. The lender will do background and credit checks to verify the buyer’s fiscal health and ability to afford the borrowed amount.

Don’t Be Too Picky

Everyone has a list of features they’d love their new home to have, but it’s unlikely that a buyer will find a home that fits their desires perfectly. To find a home in a competitive market, buyers need to understand they won’t be able to find the perfect home. Even if they do, the steep competition may lead to the seller picking a different offer. Instead, buyers should focus on the most important home features. Remember: many desired features can be added or changed after purchasing the home.

Don’t Submit Low Offers

Once the buyer has found a home they like, it’s time to submit their offer. Under normal negotiating circumstances, buyers may want to submit an offer under ask. However, when there’s a lot of competition, this works against the buyer. In a seller’s market, it’s not uncommon for the seller to receive more than one offer on their home. Instead, buyers should always put their best offer forward first to show the seller that they are serious about purchasing the home.

Know you’re not alone in seller’s markets. Your real estate professional is in your corner to help you navigate the ups and downs. It is more difficult to buy a home in a competitive market than it would be otherwise, but it definitely isn’t impossible. These tips can help home buyers find and purchase their home in such markets.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Updated February 2024