Record home prices, rising interest rates, and low inventory have created an incredibly tough environment for buyers. It's still entirely possible to land a property despite the current market conditions. Buying a home in a hot seller's market just requires some extra work, time, and a lot of patience.
Our real estate agents have been working closely with buyers to navigate the complexities of this unprecedented market. Here are 7 tips we frequently share with our clients:
- Choose The Right Agent
Working with a good real estate agent is the best way to navigate this current market. An agent can notify you about property matches as soon as they hit the market. Winning a bidding war means crafting a competitive offer, and a good agent can provide advice on the right offer price, contingencies, and offer terms. Bottom line -- pick an agent with a lot of experience and who has a track record of helping buyers land homes, especially in a competitive market.
- Limit Your Inspections
Waiving inspection contingencies is one way to create a compelling offer, but you'll want to be sure to balance the risk. You might feel comfortable enough to waive pest infestation, sewer, or radon inspections -- but remember, waiving the standard home inspection can have significant consequences.
- Get Pre-Approved
In a hot market, most homes don't sit on the market for very long, so you need to be prepared to act fast. If you're planning to finance your home purchase, work through the process of getting pre-approved through a lender before you start your home search. You'll need to include your pre-approval letter with any offer you make so the seller knows you're able to secure financing if needed.
- Temper Your Expectations
When buying a home in a hot market, it may help to set your expectations. While you never want to settle on a home that isn't right for you, you might need to prepare to forgo certain amenities. If you can live without a third bathroom or a walk-in closet, you might want to make the sacrifices if you can. With a record low inventory and lots of buyers on the market, finding a house that checks all the boxes can be a challenge.
- Tell Everyone You're Shopping For A Home
Bidding wars are an unfortunate reality for buyers today, with multiple offers being the norm instead of the exception. You might be able to get a leg up on the competition if you can express interest in a home before it even hits the market. By letting your friends, family, and coworkers know about your home search, you might get lucky enough to hear about their upcoming plans to list.
- Skip The Extras and Demands
When competing with multiple bids, you don't have much leverage to negotiate. At the end of the day, you want your offer as clean as possible. Try to avoid making additional demands or requests, such as furniture or additional appliances in the deal.
- Be Patient
While it can be difficult to navigate, it's not impossible. However, patience is key. Be prepared for the home buying process to take time, and expect to lose a few bidding wars.
Hot seller's markets don't last forever, and with rising rates and home prices, you can expect things to cool off eventually. We can help you navigate the market. Contact us today.