When it’s your time to buy a home, you may have to venture out in a seller’s market, where inventory (ie. properties for sale) are low and lots of buyers are just waiting to pounce and snap them up.
The good news is you’re not totally powerless. Buyers always have options for gaining leverage and getting their offer accepted, no matter how hot the market is.
If you’re looking to buy real estate in a hot market, here are some things you can do to gain an advantage.
Get your finances in order before you start looking
Speed is of the essence in a hot market, with quality properties often coming on the market and being sold all within the same 24 hours. So it’s important to be ready to move at a moment's notice on a property you love.
The first thing to do is get your financial information in order. That means crunching the numbers on what you can realistically afford, cleaning up any credit score issues, having your down payment ready to go, and, of course, getting preapproval for a mortgage from a lender.
Bonus financial tip: Don’t make any major purchases, like a car, or change your employment status while you’re shopping for real estate. These moves can affect your credit score and cause your mortgage pre-approval to fall through. Wait until your real estate deal is done and dusted before accepting a new job or moving forward on a major purchase.
Be decisive and make your best offer out of the gate
While it’s human nature to want to get the best value for your money, aggressive negotiating just won’t fly in a hot housing market. If you come in with a low offer, with the expectation that you’ll make a better one after negotiating, you’ll likely end up losing the property to a higher bid. If you love a property and want to be a serious contender in the bidding process, put your best offer on the table up front.
This puts you ahead of the pack in a couple of different ways. First, it shows the seller that you’re serious about moving forward and closing the deal quickly. Second, because so many other buyers will be operating with the mentality of wanting to get a bargain (like we said, it’s human nature!), many of them won’t bring their best offer right away, making it easier for yours to rise to the top of the heap.
Don't let emotions cloud your judgment
It can be gut-wrenching to fall in love with a property and lose out on it, which is why it's absolutely key to stay neutral and level-headed while house hunting, especially in a hot housing market. Allowing your emotions to rule the day puts you on the fast track to frustration and fatigue.
When you’re disappointed about not getting the property you want, remind yourself that the real estate market is just like life: it's vast and unpredictable. The real estate opportunity you miss out on today may just turn out to be a blessing in disguise when you find a place you love much more later on.
Choose an experienced realtor who knows how to navigate a hot market
Even at the best of times, buying and selling real estate can be stressful. The best way to make things easier on yourself is to find an experienced realtor who knows the ins and outs of the industry and can guide you through the process.
A seasoned real estate agent is much more likely to have the know-how, the people skills, and the savvy to get your offer accepted, even if there are literally dozens of others on the table.
Pan Florida Realty is at your service
Pan Florida Realty has been in the business for close to 40 years and has seen the housing market go through countless ups and downs. Whether you’re a first-time homebuyer or you’ve been around the block a few times, our experienced agents can help you navigate a hot housing market with a cool head. Reach out to us today to schedule your consultation.
