The market continues to heat up due to high demand and low inventory. If you are looking to purchase a home, you may need to adjust your approach a bit given those market conditions.
Here are a few do’s and don’ts to keep in mind.
Do’s for buying in a hot market
– Do have a pre-approval in-hand and know your maximum purchasing power.
– Do monitor the market daily for new listings, so you don’t miss out.
– Do make a good impression when you are visiting a home. This could help in competing offer situations.
– Do make your best offer. You may not have an opportunity to revise your offer later.
– Do listen to the advice and guidance of your real estate agent. Your agent understands the market and what is necessary to compete for listings.
– Do be reasonable and realistic about inspection results and any needed repairs. Sellers are less flexible in this type of market, so being nit-picky won’t work in your best interests.
Don’ts for buying in a hot market
– Don’t rely too heavily on listing photos. Some homes look better in-person and some look worse. You really need to see a home first-hand.
– Don’t delay making a decision simply because you feel you haven’t seen enough homes. There are few listings to begin with so delaying could lead to a very long wait and much regret.
– Don’t look at homes above your price range. It’s rare that homes would sell significantly below asking price in this type of market.
– Don’t take an aggressive approach to offer negotiations. Remember, it is a seller’s market.
– Don’t make offers without guidance from a real estate agent. Strategy and positioning is so important. Your agent will ensure that your offer is best positioned for success.
– Don’t over-analyze the purchase price. Comps are important, but in an inclining market, comps are always slightly behind current market prices.
– Don’t make the same mistake twice. If you are constantly under-bidding and losing out on homes, you may need to up your game to properly compete.
These are just a few things to keep in mind as you shop for a home in a seller’s market. Please note that market conditions will vary among different cities and towns. Knowing the specific market is extremely important.