5 Tips on Buying a Home in a Competitive Market

August 3, 2021

Searching for your perfect home can be stressful to begin with – but then add in the fact that it’s a seller’s market can make it even more intense. Following these 5 tips can increase your chances of getting your dream house in a competitive housing market.

Get prequalified for a mortgage.

This is really important. You’ll be able to make better decisions on what you’re looking for. When you’re ready to make the offer, the final mortgage qualification will go much quicker since everything has already been done. This will look much more attractive to a seller. It is important to remember though – just because you’re prequalified does not make it official, always make sure to make that a condition so you don’t end up in trouble.

Stay in close contact with your real estate agent.

Your agent will be on the lookout for the newest listings that meet your criteria. Be ready to see a house as soon as it goes on the market — if it’s a great home, it will go fast. Your realtor can also set up alerts for the neighborhoods and characteristics you’re looking for. Drive through your target neighborhoods, and if you see a home you like for-sale, send the address and listing agent’s name to your agent, who can schedule a showing for you.

Be ready to make a decision.

Understanding what you want in a home is important in a fast moving market. Spend plenty of time in advance deciding what you can afford and must have in a home so you won’t hesitate when you have the chance to make an offer.

Bid competitively.

Your first inclination may be to start out offering something less than the absolute highest price you can afford, but if you go too low in a tight market, you will likely lose out.

But don’t get caught in a buying frenzy.

Just because there’s competition for a home doesn’t mean you should buy it. And even though you want to make your offer attractive, don’t neglect inspections that help ensure the house is a sound investment.