4 Things to Know About House Hunting in a Hot Market
Buying a home is stressful, it's true; even more so when the market is hot. Home buyers can face many additional challenges in making a home purchase when prices are high & inventory is low. Navigating the course is why I'm here to help!
Here are a few top tips I use when guiding buyers through the difficult process:
I tell my buyers their first step should always be to get pre-approved. This is an important first step for a few reasons:
1. You (and I) will know what kind of budget you are working with.
2. You will find out if you are stretching your budget or perhaps you can afford more!
3. You should know how rising interest rates can affect your monthly payments and purchase price (compare present vs. future!)
4. You may learn how to save time and money by using funds from different types of bank accounts such RRSPs or GICs.
5. Some sellers will request a pre-approval to book a showing.
6. Lastly, you will need one on file to make an offer!
Work Closely with Your Agent
In today’s market there are so many buyers looking for a new home and a severe lack of inventory! By being the first to see a new listing (and hopefully get in the first offer), this gives you a leg up in that the seller will most likely come to you first with a counter offer or notification of a competing offer, so you will have more control when it comes to negotiation. Also, sometimes sellers are so happy to get a fast offer, they will accept right away and take it off the market (as long as it’s a strong offer!) I can send you listings personally via text/email and have you on an automatic listing alert system so you don’t miss anything!
Be Prepared for a Bidding War
In fact, be prepared for multiple bidding wars. In this market, almost every property is going into a highest and best situation. Most of my clients lose the first couple of times, just because they are getting a feel for the market and how it works, but as long as the buyer remains competitive and aggressive, they always end up with a property. My advice is to be decisive, expeditious, and listen to your realtor! Don’t forget we do this every day. My goal is always to guide you into making a smart decision to reach your ultimate goal of obtaining a property.
Do Your Homework
There are multiple situations that may come up in your real estate transaction, and you will want someone to keep your stress levels low and your bank account high. Never do anything you are uncomfortable with. Also, make sure to go see properties that line up with your “check-list”. I recommend 3-5 at a time, and don’t waste any time going to see something ‘just to see it’ – if you know a property won’t match what you are looking for, we don't want to waste time and you don’t want to drain yourself mentally by seeing too many properties - which can risk you missing "the one"
Best of Luck & Happy Buying! :)