Looking to get in on that perfect home in your dream neighborhood? So is everyone else. Check out this infographic for some tips to help you come up with a winning bid, while avoiding overpaying for your home.
With demand for housing increasing faster than supply, home buying in some areas has become very competitive. Here are some tips to help you come up with a winning bid, while avoiding overpaying for your home.
- Know what you want. In a tight real estate market, being decisive is key because you’ll need to act fast.
- Have a number in mind. Decide just how far you can comfortably stretch financially before you start searching.
- Have financing lined up. Have a preapproval letter from a Loan Officer and your down payment ready to go. If you are trading up, sell your current home first so that you have cash available for your purchase. Closing fast is a key advantage.
- Be considerate. Be available for showings on the seller’s terms. Try asking follow-up questions via email for the convenience of the seller.
- Show them the money. Put yourself in a better position with the seller by putting more money down, and your best offer first. When multiple offers are present the seller may not be as inclined to negotiate.
- Get personal. Include a brief letter about yourself and your family with your offer and express why the property is a perfect fit. Long-time owners may weigh emotional commitments higher than financial ones.
- Minimize contingencies. An offer contingent on selling your current home is not as likely to be accepted in a seller’s market. Adapting your closing schedule to the sellers will make it more likely for the seller to accept.
- Level set your expectations. In normal markets a seller will often leave appliances, even clean and refinish floors, before listing. In a seller’s market, such niceties may not be present, so you should set your expectations accordingly.
- Be ready to walk. In a seller’s market, it is easy to buy into emotional decision-making. While appeasing the seller will get the sale done, you should not skip essential steps like a thorough inspection.
When buying in a seller’s market, keep your eye on the prize. Remember that it’s about finding the right home, at a price you can afford.