In many towns and cities across America right now the market is hot… meaning the demand is high and the inventory is low. It can be a tough market for buyers, so here’s some advice for home buyers in a hot market.
When you might face a multiple offer situation, you need to have every advantage. We advise buyers to speak to a local lender (we know a few good ones) before you even start your house hunting. Start the approval process. Get your paperwork to the lender and at the very least get a pre-qualification…preferably even a pre-approval. When a seller gets a number offers and one of them is from a buyer who is already approved, that buyer stands out and is a safer bet for the seller. Take the time to talk to a lender before you begin. You’ll know what you can afford, and you’ll know which loan product is right for you and for each situation. Take time to get your A-game on.
What about cash offers? It’s true, sometimes you’ll get beat out by a cash offer. But not always. It depends on the offer and the situation. As long as it’s within the seller’s expected price range, the cash offer will often be the winner. Everyone has different motivations, and they all play out in the negotiations.
💰Offer Your Highest and Best
When a buyer is in a multiple offer situation, we always ask them, “if you miss out on this house because you didn’t offer $5,000 or $10,000 more, will you be ok with it next week, or will you be upset? The difference of $5000 may only mean $25 to $50 on your monthly mortgage payment.”
If you really want the house, you’ll need to offer your highest and best. When there are multiple offers you can bet that someone else really wants the house, too. This won’t be the time when you get a bargain. You will need to offer current market value to win. Consequently, this is the time when you have to know your mind, and decide, “how much do I want it?”
🏡Do you Have A House to Sell?
In a hot market, you will find yourself competing with buyers who don’t have a house to sell. Certainly, the competition is steep in price ranges below the median, which is about $300,000 in Frederick County right now. Often, in the move-up price ranges, you will find other buyers putting their best foot forward. They may already have their home listed, maybe even already sold. Again, you’ll want to have every advantage on your side.
We advise having your home listed on the market, or at the very least scheduled to go on the market within a certain time frame. Better yet, having the home sold gives you an even greater advantage. In a market with high demand, you can rest assured that your home will probably sell, given it’s in good condition and priced well for the market.
We understand that it is difficult to sell and buy at the same time. But remember, an experienced real estate agent has been helping people buy and sell for years, day in and day out, in all kinds of markets. We can help you thread that needle and maneuver through the process with the best possible results.
💼Use an Experienced Buyer’s Agent
Interview agents about their understanding of the current trends in the market. Are they familiar with the inventory, time on the market, and year over year trends? Your local real estate market is always changing. A veteran buyer’s agent has helped homebuyers in many different types of markets, whether a buyer’s market or a seller’s market, or transitioning markets. They will negotiate on your behalf. They represent your best interest. The best part is, the seller pays for the buyer’s agent.
😊Trust Your Agent
ITZEL ZIMMER REALTOR®