9 Tips For Buying A Home In A Seller’s Market
Buying a home is exciting, but the hunt for the perfect house can be a bit daunting. And when you are trying to purchase a home in a hot market, like the Denver metro area it can be hard to snatch up a home before it is no longer available. These tips will help you look strong as a buyer in today’s market.
1. Get preapproved (or at least prequalified) for a mortgage before you start shopping. This helps you not only know what you can afford, but from the eyes of a seller, it makes you seem like a much more interested and qualified buyer.
2. Do some research. Learn about the neighborhoods you’re interested in, the various styles of homes , and just try to get a feel for what the market looks like.
3. Visit the neighborhoods you’re interested in at various times of day. You want to get a complete picture of the neighborhood before you move-in, and sometimes looks can be deceiving. Even if a neighborhood is quiet in the morning, it could be loud and busy on the evenings or weekends, so you’ll want to be prepared. It’s also a good idea to test out your commute at various times of day to see if your drive to and from work will be reasonable.
4. Separate your needs from your wants. This can be a hard one, because it’s natural to want to hold out for the home that “has it all”, but in a competitive market you may have to compromise and be flexible. If you decide beforehand what is non-negotiable and the things that you would like to have but aren’t required, it can help you choose a home.
5. Be prepared to move quickly. In today’s market, the well-located homes that are in good condition sell quickly, so you’ll want to be prepared to act fast. You may even want to be prepared to enter into a bidding war in case you find that ideal home and want to snatch it up.
6. Find a way to entice the seller with your offer. If you can’t pay all cash for a home, you may want to think about adding things to your offer to make the buyer choose you over any other offers (particularly in a bidding war). Consider if you can waive mortgage or inspection contingencies, if the seller would prefer a slower or faster closing, or even if you can contribute something extra to closing costs.
7. Paperwork, Paperwork, paperwork. Over the past several years banks have gotten stricter about the documentation needed to obtain a mortgage, and the result is that you should be prepared to look at and fill out a lot of paperwork. But don’t worry—If you have any questions, I’m here to help!
8. Don’t buy something out of your price range.It can be tempting to take that high preapproval number that the bank gave you and start looking for homes at that price, but remember that sometimes banks will preapprove you for more than you can comfortably afford. Remember to calculate in costs like insurance, taxes, HOA fees, home repairs and other things that may pop-up, when trying to determine what is comfortable price range is for you.
9. Don’t buy a house you aren’t in love with.This may be one of the most important tips. Yes, you may have to compromise on some of your wants when purchasing a home, but that doesn’t mean you should settle for a home that you don’t like or that just won’t work for your family. If after looking you can’t find the right home, it may be a good idea to consider renting and taking up the search a little later. I’ll still be here to help you find that perfect home, and want to make sure that it’s a place where you can live, love, and make wonderful memories.