Buying a Home? 3 Tips for Moving Fast in a Tight Market
When an area’s inventory of homes for sale is low and demand among homebuyers is high, there can be stiff competition if you’re in the market to buy a home. Often, you have to act fast when you find a home you love.
According to the real estate listings site Realtor.com, inventory around the United States has continued to shrink since the beginning of 2020. By October of 2020, it was 38 percent lower than the year before and homes were selling more quickly in slower months than they had in warmer months earlier in the year.
In some markets, sellers can receive multiple offers within a day or two after putting a home up for sale. If you’re a buyer in a hot market, you’ll have to be ready for that kind of speed. Here are three tips for moving fast in a tight market. The Venice Florida Real Estate Market is Hot!
Get your finances and credit report ready to go
Especially during a time when virtual home tours are on the rise, some sellers won’t even allow buyers into a showing without a mortgage preapproval letter from a lender. And it’s very unlikely any seller would accept an offer from a buyer without one.
Before you begin your home search, you should gather all the documentation you’ll need to apply for a mortgage and ask your lender for preapproval. Documents you’ll need include tax returns, pay stubs, bank statements, and sometimes more. Especially if you’re a contract worker or self-employed, you might be asked to provide further proof of income. Be sure to ask your lender everything you’ll need to show in order to qualify for a home loan.
It will also be important to check your credit report and boost your score as much as you can before making an offer on a home. Building your savings account is also helpful, as the more cash you are bringing to the table, the more attractive your offer will be to sellers. Having your arms around the financial aspect of a home purchase should make you feel more comfortable with making an offer quickly.
Have a firm list of must-haves
Before embarking on your home search, it’s a good idea to have a clear grasp of the things your new home must have and what features you could do without. In other words, what are your dealbreakers? Make a list and stick to it firmly.
Indecision is one factor that slows down homebuyers. If you find a house you think is almost perfect except for a detail or two, you’re more likely to move quickly with an offer if that detail isn’t on your list of must-haves. On the other hand, if the home is lacking one or more of the must-have features, you know to move on without an offer.
Remember that making an offer on a home is probably going to sideline you from your search for a few days while the seller considers it (and maybe others). Knowing which homes to not make an offer to purchase can allow you to move quickly to the next one.
Decide your top sales price
Going through the loan preapproval process will let you know ahead of time what a lender thinks you’re able to pay for a home, but you must decide what you’re willing to pay. An experienced agent with local knowledge should be able to guide you when it comes to an offer’s price, but only you can pinpoint exactly your spending limit.
When competing with other would-be buyers for the same home, it often makes sense to make your best offer first. The only way to accomplish that is to absolutely, positively know your top-end price.
The bottom line
In a tight market for home sales, homebuyers sometimes have no choice but to act fast. Preparing in a few ways before starting your home search should help you move quickly when necessary.
Brad Tritschler, Broker-Associate | Venice, Fl 34285 | email@example.com