Tips for Buying a Home in a Competitive Market

It can be intimidating for home buyers to face a competitive local housing market. They know going into their home search that they will be up against steep competition. The listings that are available are not going to last for more than a day or two, and they will almost always be competing against other buyers in multi-offer situations. There are challenges to buying a home in a competitive market, but it is certainly not impossible.

These tips can help buyers navigate the market conditions and ultimately purchase the property that they have been dreaming about.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Seek Preapproval Prior to Seeing Homes

The majority of home buyers will be working with a lender in order to secure financing for their new home. In a competitive market, it is necessary for buyers to get preapproval for a mortgage prior to seeing homes. In addition, the lender should provide the buyer with a preapproval letter that can be presented to sellers at the time that an offer is made. This proves to the seller that the buyer is qualified and able to purchase a home at that particular price point. Buyers who have a preapproval in hand are going to have a greater chance of getting an accepted offer.

Draft a Letter to Submit With Offers

The real estate transaction can seem impersonal—particularly when a buyer's agent is working with a listing agent in order to negotiate a purchase agreement. However, home sellers are human too, and a personal touch can go a long way in differentiating one buyer from another. Buyers should write a heartfelt, earnest letter to the home seller upon submitting their offer. The letter can offer insight into why they love that particular home, or why they want to live in that neighborhood. This is appealing to sellers, and sometimes is the factor that makes them choose one offer over another.

If Possible, Offer Cash

Understandably, sellers are most likely to accept the offers with guaranteed financing. The only form of financing that is completely guaranteed and is the least likely to fall through in the middle of the deal is cash. If a buyer is in a position to offer a full cash offer, or they can provide a more significant down payment, they will be more likely to have their offer accepted by a seller.

Be Flexible and Keep an Open Mind

Buyers who are facing a competitive market are likely going to have several offers rejected on multiple properties before they get an accepted offer. This can be frustrating and discouraging, but buyers who keep an open mind are less likely to be disappointed. For example, a buyer may opt to purchase a home that requires more interior updates because it is less desirable to other buyers, who want a move-in ready property. Flexibility in a competitive market is critical, and will help home buyers find a house that they can turn into a home.

Buyers who work with an experienced West Pointe real estate agent will feel more confident as they begin the process of buying a home in a competitive market. The real estate agent will provide them with the most up-to-date information about available listings, and will craft a favorable offer that will be appealing given the current market conditions. For more information on buying a home in a competitive market, contact a qualified real estate agent today.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.