In many markets across the country demand has officially exceeded supply. Home prices are on the rise and properties are quickly flying off the market. While this is a great time to be a seller it can be a difficult time to be a buyer. No longer do you have the luxury of submitting a lowball offer and waiting for a response. You need to be ready to act aggressively as soon as a new listing hits the market. There are still properties to be had in any market but you need to change your approach. Here are four tips to help you buy in a competitive market.
Update pre-approval. In a competitive market everything associated with your offer needs to be perfect. In a multiple offer situation sellers will pick the offer that they are most comfortable with. If there are signatures missing or items not updated they will surely look elsewhere. The most important contribution you can make as a buyer in with your preapproval letter. This needs to reflect the current purchase price, address and the date of your offer. If your letter is generic and outdated your offer won’t be taken seriously. The minute you find a property you like contact your lender or broker and ask them to send you an updated preapproval letter.
Know what you want.You need to be ready to act as soon as a property you like hits the market. The only way you can do this is by knowing what you really want from a property. The more detailed you are with what you want the easier it will be for your real estate agent to deliver it to you. Sit down and write of list of everything you want from the property. Put this list in the order of importance and review your list with your real estate agent. When a new listing fits your description you can act quickly without any hesitation.
Be ready to act.New listings may only last a day or two in ultra-competitive markets. You never want to miss out on a property you really want because you were slow to act. This means being on call for showings whenever they come up. If you view a property you like you need to make an offer as quickly as possible. There may not be much time to sleep on what price you want to offer. Quick, decisive action will often get you the property you really want.
Stay patient.As important as it is to be ready to act you also need to know when to take your foot off the pedal. The goal with any purchase is not to simply buy a property. You want to buy the property that you really want. If this means waiting for the right one to come along than that is what you have to do. It can be very frustrating losing out on properties that are quickly snatched off the market. You can’t let frustration lead you to making on offer on a property you aren’t completely sold on. By staying patient it allows you to find your dream home.
In a sellers’ market you need to change your mindset but not your standards. You can still get a property you really want but you need to adjust the way you go about it.