Buying a home in a competitive market can be a challenge. Getting pre-approved, doing research in advance, making the first offer and making the best offer possible can help you outshine the competition and win the house of your dreams.
As a home buyer, one of the first choices you'll need to make is whether to get pre-qualified or pre-approved for a loan. Pre-qualification is a relatively easy process that involves contacting a mortgage lender, providing the lender with information about your financial status, and then finding out from that lender how much you would be able to borrow based on the information you provided. Pre-qualification is a good way to estimate the amount that you could potentially borrow.
Pre-approval is a more complicated process that involves filling out an application for a mortgage and providing financial documentation like tax forms. Once the application has been completed, the lender provides the buyer with a letter that certifies how much the buyer would be eligible to borrow. Pre-approval is far more meaningful in the eyes of home sellers, so getting pre-approved is a good way to make your offer more attractive when the time comes.
Do Your Homework
Do research in advance to determine where you want to buy a home, how much you can expect to spend for a home in that neighborhood, and what type of property you'd like to buy. After doing your homework, you'll be able to distinguish a good deal from a bad one and you'll also know if it fits your home-buying wishlist.
Make The First Offer
Sellers are almost always tempted to accept the first offer on their home, so sometimes making the first offer can lead to a fast acceptance. If your offer comes shortly before several other offers, the seller may place some priority over your offer simply because it was first.
To ensure that your offer is made first (or at least, close to first) go to home shows on a regular basis and make appointments to see houses as soon as they hit the market. Scour the real estate listings daily and stay in regular contact with your real estate agent. When you find a home that interests you, contact your real estate agent as soon as possible to make an appointment.
Make The Best Offer Possible
When you find a home that you truly want, it's very important to put forward your best offer.
- Don't try to negotiate the price.
- Stay flexible on the move date.
- Don't ask the seller to pay your fees or make other concessions.
- Put as much money down as you can afford.
Keeping the terms of your offer as attractive as possible will help you stand out from other potential buyers.
Work With An Experienced Real Estate Agent
Working with an experienced real estate agent during the home buying process is important, especially when the market is competitive. An experienced real estate agent can help you make the best offer possible, and can help you find a home that properly matches your needs. If an offer is accepted, your real estate agent can help you negotiate with the seller to ensure that the transaction is smooth and satisfying. If you're thinking about buying a home in a competitive market, get started today by contacting a reputable real estate agent.
The Ashton Real Estate Group of RE/MAX Advantage
The #1 Real Estate Team in Tennessee and #4 RE/MAX team in the world!