In today’s seller market, the competition for home buyers who want to buy a home is fierce. On average, homes are selling within three weeks. This means that when a home is listed, it leaves home buyers little time to find the home, bid on it, and win the bid.
This is driving up the prices of homes and homes that have the features such as proximity to areas of employment, a walkable location, and a good school district drive the prices up even more.
Even with the competition for purchasing a home, the high cost of rent and the likelihood of mortgage rates being higher in the future are making many decide to purchase a home now. To be successful in purchasing a home in this market home buyers need to be flexible.
Here are a few things home buyers can do to improve your chances to find your home in the current market.
Being pre-approved shows that you are serious and allows you to move quickly if you find a home that you are interested in. If you find a home that you are interested in, but other home buyers are as well and they are pre-qualified while you are not, the seller will likely choose them.
Most of the time in a competitive market agents will not even have their clients’ homes shown to potential buyers that are not pre-approved.
When a seller sees contingencies on an offer in a hot market, that offer is quickly discarded in favor of those offers that do not have contingencies in them. With little inventory on the market it has created a very competitive market. A seller is not going to wait on a contingency that requires your house to sell or other contingencies when they are getting other offers.
In a normal market you can make an offer below asking price and still be in the running for the home. In a competitive market home buyers have to bring a strong offer from the start. The offer needs to be a strong net price offer. A net price offer means what the offer comes out to minus what the buyer may be asking for in closing costs, concessions, or any other monetary details.
These houses are in every area. They are often overlooked and definitely are not as appealing at first glance. These homes are usually not updated and may need some repairs, but the good ones are structurally sound.
While these homes are not for everyone, someone that is willing to put the time and money into repairs can save themselves a lot of money and cut out a lot of competition by focusing on finding one of these homes.
Remember that a competitive market requires home buyers to move quickly. With that in mind, you don’t want be forced into bad decisions. Have a plan and be ready to move forward before you begin your home search.