When a market is hot, finding and buying a home can feel like a tug of war. In a seller’s market, homes go quickly. They can be on the market one day and gone the next. And on top of the challenge of finding a home, most homes (especially the desirable ones) have multiple offers.
The good news is that buying a home in a hot market is not impossible! You just have to approach it strategically and be prepared to take quick action in order to successfully buy the right home. Here are four tips for buying a home in a hot market that will put you a step ahead of the home-buying competition:
Be Ready To Shop: Buying a home can take lots of time and effort, especially during a hot market. Since the inventory level is low during a seller's market, it is critical that a buyer is ready to shop for a home. It is very common that a home will have multiple offers within the first 12-24 hours of being for sale. A listing today could be a memory tomorrow, which means you cannot always wait for that weekend showing. Try to be flexible and make yourself available for showings as listings become available.
Move Fast: A hot market means that you will not be the only potential buyer checking out a home. It will be important you avoid over-analyzing your situation. Obviously you do not want to settle, but you should decide early the kind of home you want, where you want and your price range. When you find a home that meets your qualifications - don’t hesitate - make an offer.
Have Financing in Place: After you have seen a home, you might only have a few hours or day to get your offer submitted. You can assume sellers will likely be reviewing multiple offers and yours should indicate there will be no delays in closing. In order for you to be “offer ready” when you find the property you want, it is crucial to have any supplemental paperwork, like your mortgage pre-approval and proof of funds for the down payment, ready to go ahead of time.
Make Your Best Offer: It is totally natural to look at a list price and wonder if you can negotiate a bit and save some money. In a hot housing market that strategy may not work. When inventory is short and competition is high, it will be beneficial to make a strong offer right off the bat. Depending on how badly you want the home, you may need to prepare yourself to even consider an offer above the price range.