Buying a home is an exciting time, but the process can be difficult if you’re trying to compete against multiple buyers. If you want your offer to stand out in a competitive market, there are a few steps you can take.
Pay Attention to Your Area’s Housing Market
Being the first in line when you want a home is challenging in competitive markets. Sometimes you don’t even know what you’re competing against, other than low inventory or other factors that make a market difficult to break into. When you’re trying to find Huntington Beach, Newport Beach, or Costa Mesa homes for sale it’s possible when you pay attention to the local market. Watch for trends and try to take advantage of opportunities that may not be perfect, but can be adjusted to your needs and wants.
Come to the Table With a Strong Offer
Your first step is to make sure you have a strong offer. “Strong” means that your offer is competitive and attractive to the seller, but also one that will not be rejected outright. This means that it’s important not to lowball the seller or try and get too much from their end. In competitive markets, the sellers usually have the upper hand, so buyers need to use wisdom on coming to the table with a good offer that’s appealing to the seller.
Be Willing To Walk Away
The next step is to be prepared to walk away if you don’t like the terms of the deal. This may sound like common sense, but it’s easy for buyers and even agents to get caught up in the excitement and forget their priorities during this process. Negotiating with sellers can take time, and there will almost always be some back-and-forth before an agreement can be reached on any part of a contract. But if the sellers’ terms don’t work for you, then don’t feel pressure to buy anyway. It’s important to keep your finances in the right perspective so you don’t end up in a bad real estate deal and over your head.
Get Your Money Together
You can’t buy a home without the right kind of financing. A mortgage is a long-term loan that allows you to purchase a property, but it requires you to put money down upfront. You get that money back when you sell the house or refinance it at some point down the line.
You want to prepare for the process by working on a good credit score. Your credit score is one of many factors lenders use when determining whether or not they’ll approve your application for a mortgage. The higher your credit score, the better. Even if yours isn’t perfect, it should still be decent enough for approval from most lenders and real estate agents.
Have a healthy down payment. Most banks require homebuyers to make an upfront cash payment equal to about 3% or more of the total loan amount when they buy their new home so that they can afford monthly payments over time without having them go over budget too much each month once all is said and done.
Put in a Cash Bid
A cash bid is an offer that doesn’t include the mortgage. It means you are buying the property with all cash, and there is no need to wait for financing. A buyer who puts in an all-cash bid will have an edge over other buyers who need a mortgage. Once you decide on a home, make an offer immediately, and make sure they know that it will be paid for in cash.
Look for Less Competitive Markets
If you’re looking for an affordable home and a lower demand, consider buying outside of major metropolitan areas. A less competitive market means that fewer buyers are competing for the same properties, which can help you find an affordable home without having to bid against others in a bidding war. Consider your location carefully. Consider where you want to live as well as what kind of lifestyle you want before deciding on a location that works best for your needs and your family’s desires, including schools, parks, and other amenities within walking distance.