Scarce inventory combined with rising prices and a record number of prospective homebuyers means that navigating today's real estate market requires smart strategies. If you're ready to begin your search for your dream home but are concerned about the challenges of trying to buy a home in a sellers' market, keep the following five strategies in mind in order to optimize your chances of success.
Put Your Best Offer Forward
Playing negotiation games in a hot real estate market may leave you empty handed. Whether you like it or not, the sellers are holding the cards here, particularly in the more desirable neighborhoods. Offering your best price puts you ahead of the game in this situation.
Consider a Less Desirable Neighborhood
Keep in mind that with the urban renewal Renaissance taking place in many cities across the country, today's less-than-desirable neighborhood is likely to be tomorrow's new hot spot. Buying in a neighborhood that has yet to be discovered often ends up being a very good investment. Besides, you'll experience less competition for available properties in these areas. If your target destination is a city that is particularly hot at the moment, such as Portland, Oregon, or San Jose, California, consider purchasing property in outlying suburbs instead of seeking a home in the downtown core.
Get Pre-Approved for a Loan
Getting pre-qualified for a mortgage only means that you might be approved for a loan—all it really means is that you've spoken with a lender. But getting pre-approved means that you've already submitted a mortgage application along with the necessary documentation providing proof of income and other applicable information. Pre-approval shows sellers you're not only serious, you're ready and able as well.
Work With an Experienced Real Estate Agent
Always hedge your bets by choosing an experienced agent who knows your desired neighborhood well. A seasoned agent with experience navigating the market in your desired area can save you considerable time and stress when trying to buy a home in a highly competitive market.
Be Ready to Make Quick Decisions
Bear in mind that hesitations may result in someone else beating you to the finish line when it comes to today's tough housing market, so be prepared to act fast when the right property comes along
For more information on finding the home of your dreams in a hot real estate market, please contact your local real estate agent at your earliest convenience.