4 Crucial Tips for Buying a Home in a Competitive Market
If you’ve never bought a house before, chances are, you don’t know where exactly to start and what to expect. This could be a massive problem, especially in competitive markets where properties sell rapidly.
I understand how significant becoming a homeowner is for you, so here are the most important tips for buying a home in a competitive market:
1. Know exactly what you’re looking for
We all know that buying a house isn't just as simple as, for example, buying a new piece of clothing. Lots of criteria need to be considered when buying your first home. I recommend keeping a list of all of your specific wishes.
Why? Since properties in competitive markets sell rapidly, it’s crucial you know exactly what you want so that when an opportunity shows up, you can take full advantage of knowing what you want and immediately decide whether you want the deal or not. Once you know what you want, it’s time to get your pre-approval.
2. Have your pre-approval ready
Before you even start contacting any seller about potentially buying their home, you should head on over to a lender and get a pre-approval letter.
One thing to keep in mind is that being pre-qualified is not the same as having a pre-approval. In fact, don’t even bother getting pre-qualified since it’s only a quick process based only on the information you provide, meaning it’s not verified by the lender.
3. Try to go conventional if you can
There are many different kinds of loan programs out there, for all kinds of buyers. Depending on your situation and qualifications you may be a better candidate for one program vs. another.
The most common programs are FHA, VA, and conventional. They each have their very specific criteria and requirements. FHA and VA are both government-backed loans that come with their own layer of additional guidelines that are sometimes intimidating to a potential seller who is not well versed in them.
When sellers have a choice between a conventional loan or FHA or VA, they are more likely to choose a conventional offer. Speak to your lender about going conventional if it's an option for you.
As a result, pre-approval letters hold a lot more weight with home sellers. It means your lender believes you and that you can actually afford to purchase a home you’re looking at.
4. Hire the right agent
Most people don’t realize the importance of using the services of a professional real estate agent, especially in a competitive market.
Whether you find your agent online or by a referral from your friend, one thing you should make sure of is to find an agent who specializes in the area you want to purchase your home in. Their inside knowledge of the local real estate market can put you on the fast track to success.
Buying a home in a competitive market could be difficult for many people, mainly for lack of knowledge. Now you know the most fundamental tips for buying a home in a competitive market, which means you’ll know exactly what to do when an opportunity shows up.
Contact me! I'll be more than happy to answer any of your questions.