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November
29
29
Helpful Tips for Buying a Home in a Competitive Market
You're ready to purchase a home, but every home you're interested in sells before you even have a chance to look at it. Or, maybe you're finding yourself in a bidding war with other potential homebuyers.
Buying a home can be a stressful experience, but this stress is often amplified when you're dealing with a competitive market. Our real estate agents suggest taking the following steps when buying a home in a competitive market.
- Get Pre-Approved for a Mortgage
Before you begin looking for a home, work with a lender to get pre-approved for a mortgage. Make sure that you get pre-approved, not pre-qualified, for a loan. Pre-qualification is more an estimate of what you can borrow, while pre-approval lets you know exactly how much you're approved for. When you get pre-approved for a mortgage, you submit your financial information (including documentation, like your W2s, tax returns, and paycheck stubs) so that the lender can verify your information and let you know what kind of loan you're eligible for. In a competitive market, many home sellers won't even consider offers from individuals who aren't pre-approved.
- Decide What You're Looking for in a Home
You need to know what items are must-haves for potential homes and which details you're willing to compromise on. This will make it easier (and quicker) for your real estate agent to find Augusta homes for sale that meet your needs. By defining what items a prospective home must have, you can avoid wasting valuable time touring properties that aren't right for your lifestyle.
- Work with an Experienced Local Real Estate Agent
An experienced real estate agent is invaluable when buying in a competitive market. They know how to navigate a hot market, and they're aware of any potential challenges you might face as a buyer. Agents with ample experience handling homes in the area you're interested in have a lot of knowledge about the different neighborhoods and communities. A competitive market feels daunting to many homebuyers; a qualified agent can offer advice and guidance to make the process feel less overwhelming.
- Include Proof of Earnest Money with Your Offer
Typically, you don't give earnest money to the seller until they accept your offer. The earnest market acts as a deposit to prove to the seller that you're serious about buying the home. When the deal closes, the money goes towards your down payment and closing costs. However, if you violate the terms of the deal, you'll potentially lose your earnest money. In a competitive market, consider including proof of your earnest money with your offer. You might take a photo of a check that you intend to use for the earnest money. The seller will realize that you're serious about purchasing the home and that you have your finances in order. If they're dealing with multiple offers, they might be more likely to go with the buyer who seems the most likely to complete the deal.
- Have Extra Cash Saved Up
It's not uncommon for homes to sell for prices above the asking price in a hot real estate market. Having additional cash saved up gives you options. Lenders will base your loan amount on the appraised value of the home. If the home sells for a price over the appraised value, you'll need to pay the difference in cash.
Ready to start your search for a home? Contact us today!