You’re probably well aware that the real estate market is more competitive than ever (due to low inventory, among other things).
Still, it’s not a bad time to buy a house. Mortgage rates are low, home values are on the rise and, in many cases, buying is still more affordable than renting.
Are you considering purchasing a house in today’s fast-paced market? Here are five tips that can help.
Get preapproved. Applying for a mortgage preapproval is critical in a competitive market. Not only can it give you a good price range to shop in, but it can also help sellers feel more confident in your offers (and maybe even choose yours over others).
Be flexible. If you can be flexible on your closing date or willing to waive a contingency or two, it will often work in your favor. Sellers are looking for the easiest, most lucrative sale in most cases. We can discuss what makes sense for you when the time comes.
Make a decent earnest money deposit. Earnest money deposits are “good faith” deposits that indicate how serious you are about a home purchase. A larger deposit may help your offer stand out.
Be prepared to bid more than the asking price. Consider searching in a lower-than-maximum price range so that you have room to bid upward if necessary. In many cases, you’ll need to increase your bid to compete with other buyers, so maxing out your budget from the start probably isn’t the best strategy.
Be patient (but stay alert). In the current conditions, you may not find what you’re looking for immediately. On the other hand, things could start moving quickly at any time. To find success, remember that communication and flexibility are key.
It can be challenging to buy a house in today’s market — but that doesn’t mean it’s impossible.