How to Buy A House in Today's Market

Buying a house can seem daunting in times like these, especially in a seller's market. There are currently more buyers than homes on the market, so sellers have more many more offers to shuffle through. If you are currently buying your first or second home, here are some tips to help you through the process. 

Finance First, Shop Later

The old rule of thumb was to have a budget in mind, find your dream home within that budget, and then get approved by your mortgage lender. But that rule no longer works. Since we are in a seller's market now, it is wise to get pre-approved from your lender first, so that you can make your offer comfortably when finding your dream home. This gives you an idea of how much you can afford and how much the lender will offer you. 

 

Getting a pre-approval mortgage statement is a document that states how much money you can borrow to pay for a home, as long as it meets specific criteria and does not exceed the amount. 

 

When submitting an offer on a home, it is best to include your pre-approval document, so the seller will feel more comfortable moving forward with you. Since the competition against other buyers is higher than ever, it’s good to have all your ducks in a row with a pre-approval letter or all cash proposals to have a fair chance. There are too many buyers for sellers to take a chance on one who hasn’t done the financial work first.

Make an Offer on a House ASAP

Note there is no right or wrong time frame for making an offer for a house you love. However, you don't want to wait until the last minute. Once you have toured the home, research the neighborhood market and make your best offer as soon as possible. If you want to make an offer sight unseen, make sure you have researched the house to ensure you are making the best offer possible. 

 

Looking at the home's value, the neighboring homes, the duration of the house sitting on the market, and the exterior will give you a feel for whether the seller is asking a reasonable price for the home.

 

Along with a submitted offer, you can make an earnest money deposit into the transaction to help your offer stand out against your competition. Think of it like a small down payment or initiative to show the seller that you are serious and willing to do what you can to push the envelope. Knowing that this money isn’t refundable or returned if you decide to back out of the deal, be wise when pursuing this option. 

 

Once your offer is submitted, you are in the waiting game to see if you are accepted, denied, or countered with a negotiable offer. 

Expect A Yes, No, Or Counter Offer on a House

The goal is to make your offer seem irresistible to the seller, so they'll be more willing to accept or negotiate your offer. However, there is still a chance of being denied for many reasons. Most likely, the seller pursued other offers that appeared flawless to them. Maybe one buyer offered the seller to stay in the home for a certain amount of days after closing. Or perhaps a buyer offered to pay in cash for the total asking price.

 

Regardless, you want to prepare yourself for a denial, just in case things do not work out. If the seller accepts your offer, they will sign the purchase and sale contract. If they decline, all negotiations will end. If they counter by offering terms, you can accept some or all of their terms or offer your terms and conditions. Once done, the seller has the right to accept or reject your counter, and all negotiations will cease. 

 

When it comes to negotiating offers, there are a few things to consider. First is the asking price, repairs, fixtures, contingencies, and closing time frame. This is where having a trusted realtor comes into play. With their advice and assistance, negotiating will feel less intimidating than doing it alone. You want to ensure you get a fair deal when buying a home because missing a crucial step can cost you a lot of headaches and money. 

Have Faith in Your Agent

Having a reliable and trustworthy real estate agent by your side from the beginning to the end is such a lifesaver for you. It is vital to have an agent who is local in the area because they are knowledgeable about the best homes that may have not yet hit the market. This is the best way to buy a home in a buyer’s saturated market. 

 

You will have the upper hand in submitting your offer and accepting it by blowing your competition, if any, out of the water. This requires full communication with your agent, telling them your wants and needs for a house, and trusting them to deliver. 

 

If they can’t offer a house, not on the market, they can find one suitable for your needs within your budget. In addition, most agents have access to cutting-edge technology to help search for homes in the area you want and at the price you like. 

 

They will let you know when a new listing is available so you can pursue it with an amazing offer. You will also get many options of other homes to view, just in case things don't go as planned for the first home you picked. 

 

Conclusion

Buying a home in today’s market is much less scary and complicated when you have an awesome real estate agent by your side. They will guide you through the pre-approval process, help draft your offer to a home, negotiate terms and asking price, guide you through documents to sign for a contract, and navigate the closing process on time. 

 

Don’t let the market deter you from your forever home. Give us a call today, and we will guide you through this jungle of a seller’s market with our wisdom and technology to the finish line.