In a tight market, competition is tough and the odds of losing your dream home to another buyer are high. Here are some tips you should remember when buying a home in a tight market:.
1. Prequalify for a mortgage. You will be more confident in making an offer to buy, plus, the seller will find your offer more attractive.
2. Ask your agent to constantly update you on the most recent listings. Your real estate agent can help you to be always ready to see a new home as soon as it is listed. Great homes sell fast, so it is important to stay updated on the most recent listings.
3. Take the initiative to canvas new listings. Browse websites and local newspapers, or drive through the neighborhood and look for homes with “for sale” signs. Once you spot a home you like, jot down the address and the listing agent’s name and contact number. Have your agent schedule a showing with the listing agent.
4. Be ready to decide. You should already know way in advance what you are looking for and want in a home to avoid being unsure once you get the chance to make an offer.
5. Make competitive offers. Don’t start with the maximum amount you could offer, but don’t go ridiculously low either or you will end up losing the deal in a tight market.
6.Minimize restrictions. Offers can be rejected if you have too many contingencies like selling your home prior to moving or delaying the closing date. Ask your lender if they can give you a bridge loan to cover both mortgages for the meantime.
7. Don’t rush. Just because it’s a competitive market and homes sell fast doesn’t mean you should rush into buying a home. Even if you want to make your offer appealing, don’t overlook home inspections which will ensure that you are getting value for your money and won’t have to spend more in the future on repairs.