Top Tips for Competing in a Hot Real Estate Market
Although some of the real estate market has cooled compared to the recent past, select markets still remain hot. Regardless of the market you may be looking in, some properties will be “hot buys” and are still receiving multiple offers at the same time. So the big question is how do you position yourself as being most competitive when you are submitting an offer on your next home? Here are some helpful tips to follow.
Prepare Yourself and Your Finances
Getting all of your ducks in a row for finances and aligning yourself with a strong team are good places to start. Here is a closer look at a checklist of action items.
Finances – Make sure you have saved for both your down payment as well as your closing costs. Check your credit score as well to see how it fairs as this will impact your borrowing power.
Records – Collect all of your supporting documents that will be required for your home loan. This includes things like pay stubs, bank statements, savings account information, proof of additional income as well as any alimony or child support you may have to pay.
Research areas – Check out some areas of interest for what they offer you and your lifestyle, but also how much homes with your criteria cost. This will help you narrow down your official search and act quickly on a property that arises and is a good fit.
Choose the Right Lender – Working with a local and reputable lender can sometimes be helpful in a competitive deal. Local agents know local lenders and those with good reputations and are known for smooth transactions may give you a leg up in a deal.
Strengthen Your Offer
There are some other ways to craft your actual offer to make it as competitive as possible and stand out from the rest. Here are just a few things to consider.
Pre approval – All offers should be accompanied with a pre approval letter, but some lenders will go further with underwriting ahead of time to make your offer even stronger.
Down payment – Another idea of how to sweeten the deal is to increase your down payment. This will show good faith to sellers that your deal is more secure with more cash down towards the transaction.
Strong first offer – If you aren’t offering full price or over asking, make your first offer as strong as possible. Show the sellers what level of serious that you really are with the amount you offer.
Be accommodating – The sales price is only one part of what makes an offer ideal. Being accommodating on other things like the seller’s time frame to close, where and when to close and even limiting contingencies all will be attractive to most sellers.
Write a letter – Last but not least, consider writing a letter. This can help appeal to the emotional side of the seller by telling them in a short, but sweet note why you love the home and why it is a perfect fit for you. Most homes have great memories for sellers and there can be value in the sellers knowing that it will be enjoyed and that they will be a courteous new neighbor.