HOW TO BUY A HOME IN A TIGHT REAL ESTATE MARKET

The real estate market can shift back and forth between a buyer’s market to a seller’s market. During a seller’s market, multiple offers and surging prices may be good for sellers. But what if you’re a buyer trying to find a home when there’s hardly anything for sale? It can be frustrating to say the least. Here are some things you can do to increase your odds of finding and buying the right home.

 

1. Get your finances in order

 

When the inventory of homes for sale is low, you can be sure that other buyers will be looking for the same house you are. So, when the right home comes on the market you have to be prepared to jump immediately and make a strong offer. It’s crucial to have all the financial work completed up front.

Get your down payment and payment plan (for mortgages) well laid out so you can close quickly if necessary.

 

2. Know what your priorities are in a home.

 

Carefully analyze your requirements for a home. Write down what you want and need and put the essential features at the top of the list. Seeing a number of homes will help you determine your housing requirements. No home is perfect and it’s unrealistic to expect to find all the features you desire in one property. You’ll have to compromise. Equally map out the neighborhoods that you would want your home to be situated in.

 

3. Commit to an experienced real estate agent.

 

Find an active, real estate professional who specializes in the area where you want to buy. Many sales today occur because the agent brings buyers and sellers together on unlisted properties.

You’re at a real disadvantage if you work with an out-of-area agent. Such agents may not hear about new listings until they have been taken off the market or multiple bids have been made on them. You need to work with someone who will call you about new listings before the public learns about them.

 

4. Review your priorities from time to time.

 

If you can’t find the right home in 30 days, take another look at your priority list. You may have to consider different ideas. For example, if you passed on a home you liked because it needed refurbishing, take another look at it. Buyers who are willing to make cosmetic improvements increase their odds of buying a home in a tight market.

Be open to looking at the inside of homes that are unappealing from the outside or are different styles than you had in mind. Buyers who will consider more than one architectural style increase their options. Look at homes in a different location. Sometimes going just a few miles to an adjacent community opens up a whole new selection of homes for sale, often at better prices.

 

5. When you find the right home, act quickly.

 

A well-priced property in good condition will draw many interested buyers the first few days on the market. So, when you find the right home, sign an offer right away and get it presented immediately. You may loose the house over thinking about the offer.

To prevent frustration and disappointment, especially if you are not always in town, make sure that a close friend or family member knows exactly what you’re looking for in a home that can also look out for you if you are out of town. Then, if the right property comes on the market when you’re out of town, someone can view it, describe it to you on the phone and if it sounds right, you can make an offer.

 

6. Make your offer as competitive as possible.

 

Negotiation is essential to ensure you get the best deal. It is not written anywhere that you must pay the sum advertised on the house and of course negotiation is allowed. However it is important to make a bid that is competitive and does not turn-off the seller.

If you have a mortgage plan in place, it should be attractive enough to make the buyer take up your offer over other bidders who have put cash down.

 

7. Get a competent lawyer

 

Get a lawyer that is an expert in property law. In trying to close up a deal, you most likely will miss some vital information that will be important in future. Get a lawyer to dot the I’s and cross the T’s before finally closing out the purchase. Buying a property is a transaction and there retains the possibility that things can go sour in an instant.

Be sure to engage a lawyer who will properly advise you on crucial matters and ensure all your bases are covered.

 

SUMMARY:

 

In a busy real estate market, the more flexible you are in your search criteria, the easier it will be to find a suitable home. If you’re not able to find exactly what you want, be prepared to compromise. A good real estate agent will challenge your priorities occasionally to see if they have changed. If you’re not finding the ideal home, choose one that comes closest to meeting your needs.

 

CREDIT: https://www.hribar.com/buying-a-home-in-a-tight-market.htm

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