Tips for Buying in a Tight Market

It is hard to believe, but the real estate market is really turning around. What that could mean to a buyer is a tighter market than we have seen in a few years.  In my area, listing inventory is down, meaning there are fewer options on the market.  If a seller has a home in good condition that is priced right, they are likely going to sell quickly, and they might even see multiple offers.

When you are the seller, that is great news.  When you are the buyer, you need to be poised to make smart and quick decisions when it comes to these highly desirable homes.  Following is a list of suggestions from an article from Realtor Magazine, Tips for Buying in a Tight Market.  I have condensed it from the original version.

Jennifer

1.  Get prequalified for a mortgage.  Get it in writing, and get letters at different price points.

2.  Stay in close contact with your real estate agent to find out about the newest listings. Be ready to see a house as soon as possible — if it’s a great home, it will go fast.  Realtors also hear about listings before they even hit the market, so ask!

3.  Scout out new listings yourself. Use the internet and other resources to find houses you like to make the process more efficient!

4.  Be ready to make a decision. Decide what your must haves are, and where you would walk away.

5.  Bid competitively. This isn't the time to lowball a seller.  If they are getting multiple offers, you want to go in with a strong and serious offer or you are going to lose out.

6.  Keep contingencies to a minimum.  This isn't the time to be making a lot of demands on the seller.

7.  Don’t get caught in a buying frenzy. If you don't like the house, don't make the offer just because there are other offers!  And even though you want to make your offer attractive, don’t neglect inspections that help ensure that your house is sound.