3 Tips for Buying a Home in a Hot Real Estate Market
When it comes to buying residential homes, there are a lot of factors to consider. Of course, finding a home that suits your needs, has the features that you want, is within your budget, and is in a desirable area is likely your number one goal. However, in many real estate markets, this can be a challenge. In a seller's market, there may not be enough inventory to go around. If you are in a hot real estate market, finding the right home can be downright difficult. Here are three tips for buying in this type of market.
Get Pre-approved for Financing
If you are buying in a competitive market, proving to sellers that you have financing ready to go is key. Getting pre-approved for a mortgage will help expedite the buying process, something that is attractive to motivated sellers. When you get pre-approved, you also know how much home you can afford. In order to get pre-approval, you will need to provide your lender with financial information, including income statements and a measure of your debt. The pre-approval process typically takes somewhere between one and three days in total.
Hire a Buyer's Agent
While you may only consider hiring a real estate agent if you are selling, they can also be invaluable if you are buying a home. In a seller's market, you will want to know about any property that comes onto the market as soon as possible. Being able to act quickly can mean finding your dream home. A real estate agent will also be able to show you homes that may suit your needs in areas that you weren't even aware of. Typically, buyer's agents get paid via commission. Their commission is between 2 and 3 percent of the sale price of the home.
Be Flexible
When looking at residential homes for sale in a hot real estate market, flexibility is a must. You may have to make a few concessions if you want to find a home. This may mean not getting all of the features you desire or looking at a different part of town than the area you wanted to live in. Being flexible when it comes to asking prices is also important. Homes in this type of market often sell for more than the asking price, so it's important to be willing to bid over the asking price.
If you are buying in a hot real estate market, there are a few key things to keep in mind. First, getting pre-approved for financing is a good idea. This will signal that you are ready to buy a home and make your offer more attractive to sellers. Hiring a real estate agent and being flexible can also help you find the right home for your needs.
Reach out to a business like Pat Allen Realty Group for help buying your next home.