For those of you who have never purchased a home before, fear not. It’s not always like this. We’re experiencing what we call a “seller’s market” right now which means there are more home buyers than there are homes for sale. As a result, buyers get into bidding wars, home prices go up, and homes sell faster. The competition can be fierce. Not great news for buyers. If you’re looking for tips on finding the right home, beating out the competition, and making a purchase at the right time, read on! We have a few tips for the first-time home buyers out there that are trying to navigate the current seller’s market.
Get pre-approved for a home loan
Getting pre-approved for a home loan does a couple of things. First, pre-approval informs you of your price range. Why waste time drooling over houses that aren’t even a possibility? Limit your home search to houses you could realistically purchase. Also, getting pre-approved for your home loan speeds up the purchasing process. Pre-approval is as close as you can get to confirming your financial readiness without having a physical contract in hand. You don’t want to show interest and then ask the seller to wait on you to get approved for a loan. Your delay will give the sellers an opportunity to go with another offer.
Hire a real estate agent
Obviously, we would love to help you with the home buying process. Working with a real estate agent is even more important in a competitive seller’s market like this. A real estate agent is able to help you stay one step ahead of other home buyers out here. Realtors allow buyers to stay up-to-date on all new listings and get priority when scheduling showings. On top of that, realtors are able to give advice when making an offer and negotiating a contract, so you walk away feeling good about your purchase. There isn’t always time to go home and sleep on a decision when the market moves as quickly as it is right now.
Make an appealing offer
If you undoubtedly want to walk away with the keys to your dream home, you’re going to have to make an appealing offer. And money talks. Decide how much you’d be willing (and able) to spend, even if it’s more than the asking price. If you can make an all-cash offer, that’s even better!
Another thing that can make your offer more appealing is waiving contingencies; However, this is not always a wise move for buyers. We always recommend getting a property inspected before buying, and in a less competitive market, we would advise that buyers present offers with a list of contingencies. Waiving contingencies lets the seller know that you want to buy the property no matter what and are not going to ask them to repair anything beforehand.
Expand your home search
Every buyer has an idea of what they’re looking for, but sometimes they get hung up on little things that result in missing out on a wise purchase. Make a list of things you NEED in a home. Include the price range, number of bedrooms, bathrooms, location, etc. Then, write down the things you WANT in a home: walk-in shower, large kitchen, fenced backyard, specific neighborhood. Be open to homes that will fit your needs but might not fulfill every item on your wishlist. If you’re looking for the one and only “perfect home,” you’ll probably find yourself waiting for a long period of time.
Put your home search on pause
Navigating a wild seller’s market like this can be challenging, ruthless, and stressful. You may come to realize that it’s best to wait for the market to calm down before making a purchase. If you put your home search on pause for a short time, 6-12 months, you might find yourself navigating a completely different market with a new spread of houses for sale. If you’re unable to stay in your current home, consider renting until you decide to resume your search.