The home buying process is termed stressful, yet rewarding. If you’re searching for a home in a competitive market, you might find it harder with greater rewards. Other high-demand housing markets often come with their own unknown rules that could be tough for home buyers to adapt. Homes in some parts have literally a day to get off the market, buyers are left with little or no time to locate their dream homes, bid and win on the negotiations.After
We’ve been able to compile some strategies to help home buyers survive in very highly competitive real estate markets:
- Get pre-approved: Most homebuyers today still go out for home shopping without being pre-approved for a mortgage. You need to understand the difference between prequalification and preapproval. Being preapproved for financing means you’ve met with a lender and your credit has been examined added to other expenses which help to determine what you can afford for a mortgage with their underwriting guidelines. Being pre-approved can as well help in making the right offer.
- Make the right competitive offer: One of the most stressful and intimidating parts in the home buying process in a high-demand real estate market is the ability to make a perfect offer for your dream home. You need to choose the right offer as going to high or too low can problems for you.
- Stay off contingency contract: A good number of real estate agent will advise you on using the contingency on your buyer’s offer as it will get the offer to the bottom. Although it is certainly needed at times… such contingencies like selling your home before closing on the other one is certain to turn off sellers. You should understand the real estate market of today has very little inventory on a national scale. Not all markets are the same, but with a string, clean offer in every market condition would tell the seller how serious you are and more likely to get the deal done.
- Put in use Escalation Clause: As an extra strategy to help buyers survive in a tight real estate market, the escalation clause can be put to use when submitting an offer. This can play the role of outbidding other competing offers without having to overpay.
- Insist on home inspections: In the battle of who’s offer get accepted for the purchase, some buyers would consider ignoring the home inspection as trying to speed up the buying process and make the buyer find their offer more attractive. This always a mistake, no matter how good you may find the house, always get home inspections.
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