4 Tips for Buying a Home in a Competitive Market
In a competitive market where there are more buyers than there are 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 can be more difficult than it would be in a buyer’s market or neutral market, but it’s still possible to close on a home. Home buyers need to know how to increase their chances of having their offer accepted. Here are some of the best ways to improve the chances of finding and buying a home in a competitive market.
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 around to go to home showings. If they see a home they like, they need to immediately contact their agent to arrange a showing appointment, and they need to make sure the showing is as soon as possible. If a buyer waits around too long, then they risk missing out on homes before they even get the chance to see them. It’s in the buyer’s best interest to work quickly and prioritize seeing homes over other activities whenever possible.
Be Preapproved for a Loan
No matter what sort of market a buyer is in, they should always be pre-approved for their loan. The approval process can take several days to complete, and if a seller is trying to make a fast sale, then they will be looking for a buyer who is already approved. Getting pre-approved is an easy process, and in order to get started, the buyer will need to approach a suitable lender with the amount of money they want to borrow and their credentials. Additionally, the lender will do background and credit checks.
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 is going to find a home that fits their desires perfectly. In order to find a home in a competitive market, buyers need to understand that they won’t be able to find the perfect home, and even if they do, they may not be able to buy it due to the steep competition. Buyers should try to focus on looking for important home features. Remember: many things can always be added or changed after the home has been purchased.
Don’t Submit Low Offers
Once the buyer has found a home they like, it’s time to submit their offer. Under normal circumstances, buyers may want to submit lower offers. However, when there’s a lot of competition, this can be a very bad idea. In a seller’s market, sellers often have more than one offer on their home, so buyers should always put their best offer forward first to show the seller that they are serious about the home.
It can be more difficult to buy a home in a competitive market than it would be otherwise, but it definitely isn’t impossible. Keeping these tips in mind can help home buyers find and purchase their home in such markets.