6 Home Buying Tips for Hot Housing Markets
The housing market is heating up! For buyers, this may lead to submitting multiple offers or a potential bidding war. If you or someone you know is in the market to buy a home, here are six ways to give your offer the best chance for seller acceptance, especially when the competition is stiff:
1. Get pre-approved for your loan and have a strong cover letter prepared for your seller.
2. When making offers to purchase a home, try to be first and don’t lowball. Being first to the negotiating table plants you in the seller’s mind. But when listings are scarce, lowball offers are a losing strategy.
3. Opt for an escalation clause that tells the seller you’ll beat any offer exceeding your bid by $1,000, up to a maximum amount of your choosing.
4. Perform inspections upfront. It may cost a few hundred dollars, but it shows you’re serious. And when you make an offer without contingencies, sellers pay attention.
5. Tell them you love it by asking your agent to deliver a letter listing the reasons why this house is perfect for your family (include pictures and be specific).
6. Don’t overpay. Instead, research the market by reviewing comparable property sales prices, schools and online reviews for local businesses. Chatting with neighbors can also provide a wealth of information.
There are other things that can be done to help increase your chances of getting the home you desire, but in the end, sticking to these simple 6, will prove valuable as you go to make that offer. Don’t hesitate to reach out to one of our seasoned loan officers to see exactly what your buying power is at. Get pre-qualified today in 4 easy steps with our mortgage online application.
Good luck in finding that home you’ve always wanted. We hope we’ll be right there with you when it happens.