Buying a home can be a challenge even when there are so many options to choose from. A new home is a major purchase, even for those who have owned a home before or are currently homeowners. Factors such as location, amenities, and space will likely play a big role in your decision. Finding a home that suits your needs and is in your budget may be more difficult than you expect. Finding the right home in a hot real estate market can be even more of a challenge. Here are 3 things that you should do if you are looking for a new home in a real estate market that has low inventory and high demand.
Hire a Real Estate Agent
In real estate markets where there are plenty of properties to choose from, you may choose to forgo a buyer's agent. However, in a fast-paced seller's market, this may be a big mistake. A real estate agent can help you find properties that work for your needs and that are within your budget. They also know the market well and are able to show you properties as soon as they hit the market. Typically, a buyer's agent will split the commission from the sale, which is typically 5-6% of the sale price, with the seller's agent.
Get Your Financing in Order
In hot real estate markets, houses for sale typically don't stay on the market for long. In this situation, you don't want to lose out on a home because your financing is not in order. Getting pre-approval for a mortgage is a great way to know exactly how much home you can afford and to show sellers that you are serious about making a purchase. Mortgage pre-approval can take anywhere from 3 days (if you have perfect credit) to as long as a few months if your financial situation is more challenging.
Look Carefully at Asking Prices
Another thing that you should do if you are buying a home in a hot real estate market is to look carefully at asking prices. In these types of markets, homes will often sell for above the asking price, meaning you should probably look at properties that are below the top end of your budget. In 2017, more than 1 in 4 homes actually sold above their listing price. It's important to take this into account when looking at houses for sale in your area.
If you are looking to purchase in a hot real estate market, there are a few things to consider. First, hiring a real estate agent can be very helpful. A buyer's agent can help you find the right home for your needs. Having your financing in order is also key when buying in a fast-moving market. You may also end up paying more than the listing price in these types of markets. Contact a real estate corporation near you, such as RE/MAX West Branch, for further information.