Today's red hot real estate market has created all kinds of changes and made hard and fast "rules" that have been applied for years irrelevant. So, if you are looking to buy a home in today's hot real estate market, what are some of the things you should know? Read below for some tips to help you be successful.
Lock in A Mortgage Before You Being Your Housing Search: The old rule allowed for you to finalize your mortgage paperwork after finding your dream home. Not anymore. In today's market, having that pre-approval letter is essential in such a fast-paced market. Homes are going under contract in mere days or hours even, and not having a pre-approval letter will likely put you out of the running, especially in a multiple offer situation.
Shop For Homes Below What You Can Afford: In the old market, the buyers shopped for houses at or slightly above what they could afford. In today's market, many houses are selling for above the asking price, which is something that was uncommon before. Shopping below your budget can give you wiggle room to submit an offer above the asking price without pricing yourself out of what you are pre-approved for.
If You Love A Property, Act Fast: You used to have the luxury of taking a day or two or longer, and even touring the property multiple times before submitting an offer. While you don't want to make a decision if you are not ready, if you are interested in a home you visit, you won't want to wait long to submit your offer. If you do, the house will likely already be under contract to someone else.
Submit A Strong First Offer: Before, you would often submit an offer lower than what you could afford and wait for a counteroffer from the seller. In today's market, there are often multiple offers within the first day or two on the market, so you will want to submit a competitive offer from the start. If your initial offer is not strong, you may not have the opportunity to counter. In addition, price isn't the only thing to consider when making your offer - if you're able to make an offer that is attractive to seller, such as agreeing to their request for a leaseback, your offer can help you stand out from a crowd of other offers.
It Will Likely Take Multiple Offers Before One is Accepted: It used to be that you could usually expect to have an offer accepted after one or two tries. In today's ultra-competitive market, more often than not it takes submitting many offers before one is accepted.