Spring is typically the hottest season when it comes to real estate. It’s when buyer demand is the highest, and it’s when competition, unfortunately, is the stiffest.
That doesn’t mean buying a property is impossible, of course, but if you’re on the hunt for a house, it may mean a little extra strategy is required.
Are you considering buying a house during this busy time of year? Here are five ways you can stay competitive and win out.
1. Get pre-qualified for your mortgage loan.
This is critical no matter when you buy a home, but it’s especially important in a hot market. Not only can it give you an idea of how much you can bid (or increase your bid in negotiations), but it also shows sellers you’re a safe bet to buy their home.
2. Offer more earnest money.
Earnest money is what the seller keeps if you back out of the deal, so the more you offer? The more confident a seller feels in choosing you over other potential buyers. If this is a strategy you’re considering, talk to your agent about the average earnest money amount for your area and go up from there. If you can make yours stand out from others in the pile, it might just put your offer over the edge.
3. Choose a great agent.
Your real estate agent can make all the difference in a hot market. You want one who’s responsive, experienced, well-connected in your area, and, most importantly, fast-acting (they may need to submit an offer within hours of a home listing!) Always interview at least a few agents before deciding who will represent you, and be sure to read reviews and ratings from past clients, too.
4. Be careful with your contingencies.
Sellers have the upper hand in today’s market, and most will have dozens of offers to choose from. The ones that include tons of contingencies and hoops to jump through? Those are least likely to win. Talk with your agent about each contingency you include, and consider removing any that aren’t absolute dealbreakers. The easier you can make things on the seller, the more likely your bid will get chosen.
5. Act fast.
If you really want to get noticed, be the first bid or two on the table. To do this, you’ll need to be able to tour a listing within hours of it going live (or trust your agent enough to do it for you), and you’ll also need to be clear on the terms you’re willing to offer, so they can draw up a bid quickly and efficiently. Having a good handle on your must-haves, nice-to-haves, and dealbreakers can help as well.
Gain a competitive edge
Want to remain competitive in today’s hot spring housing market? Get pre-qualified with Park Cities Mortgage today.
Park Cities Mortgage is an Equal Housing Opportunity lender. Sponsored by NTFN, Inc. 5950 Sherry Lane, Suite 230, Dallas, TX 75225 | NTFN NMLS 75333.