The market may be rebounding in your area, which is great news for home buyers – but it’s leading to more competition for homes. As if the process of buying a home wasn’t already enough of a roller coaster, now you could be faced with fierce competition in multiple offer scenarios.
Buying in a hot market can be frustrating, particularly for those who have become emotionally invested in a specific property with multiple bidders. But proven competitive market tips can help you reduce stress when buying a new home, make the right moves and avoid overpaying.
Consider these four tips during your home search:
Understand the nature of the market. Analyzing market trends and statistical data are key in helping you prepare for the home buying process and managing your expectations. Lean on your real estate agent to access local analysis that can impact your decisions.
Lengthen your timeline. Give yourself some breathing room. When you're ready to buy a home, it's the right time to buy a home. You don't have to rush into choosing a home that isn't everything you want and need. As the housing recovery continues, more sellers are coming off the sidelines and that means some relief for homebuyers who have been faced with limited supply.
Maintain a competitive position. Boost your buying power and be ready to submit your best offer. Reserve some cash to help give you an advantage in a bidding war on an attractive home. Understand that a house is worth what someone is willing to pay for it; where some buyers have more leverage to increase their offer, you might feel you're overpaying. If you've been outbid, don't feel pressured to overextend your finances or risk suffering buyer's remorse.
Be prepared to compromise. The neighborhood you've been looking at might not be realistic, but you might find value in others. One way to do this is by looking at homes in the mid-range: not the gorgeous, completely remodeled homes or the homes in need of rehab, but rather the homes that might not have immediate curb appeal but have "good bones.” Take a closer look at other viable options.
There’s really no way around the fact that buying a home is a major decision that often generates a lot of emotion and pressure. After all, a home purchase is one of the most significant financial transactions a person will ever undertake. By taking your time, doing your research and partnering with the right agent, you’ll be able to focus on what really matters: getting yourself into the right home for you and your family.
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