Last Updated on August 26, 2022
Buying a home in today’s market is not like buying a home ten years ago or even three years ago. There are new strategies for going about securing a home in this here today, gone tomorrow market.
Are you just entering into the housing market? Arm yourself with the latest in home buying advice before you start your search.
New rule #1: Find financing first, not your dream home
In years past, many homebuyers found their home before they worried about obtaining financing, but in today’s fast-paced housing market, the new rule is to find your financing first.
Beyond finding a reputable, local lender, serious buyers should go ahead and get pre-approved before they look for homes.
New rule #2: Make an offer quickly
In the old days of home searching, buyers could take their time mulling over a home purchase. Today’s buyers have to be quick on their feet, often needing to make an offer within 24-48 hours after the home goes on the market.
You can make decisions quickly when you spend time before you search for homes figuring out how much you can afford and coming up with a home shopping checklist.
New rule #3: Think beyond the price when making an offer
It’s time to get creative and think beyond price when making an offer in today’s real estate market. A good realtor will help you figure out what’s important to the seller so that you can carefully craft a more competitive offer.
You may have to be more flexible to make this work towards your advantage. For example, you may win the offer by offering a competitive price and adding in conveniences for the seller. One example would be to accommodate the seller’s future plans by offering an ideal closing date.
Beyond the closing date, lean on your Realtor as to what’s the best strategy for due diligence and earnest money in your current local market when building your offer.
New rule #4: Look at homes below your budget
In days of the past, when buyers offered below or right at asking price, you could set your search to view homes offered at your maximum budget. In today’s market, this same approach could cost you to overspend.
Most buyers are offering above asking price, so if you’re searching for homes that are right at the top of your budget, you’re going to be upset when ultimately you have to offer more than your budget allows.
How much over asking price should you offer? That’s a good conversation to have with your Realtor before you search for homes. Your Realtor will pull comparable market data in your local area to give you a good idea of how much you need to offer to be competitive.
New rule #5: Start with your best offer first
In the old days of home buying, many buyers expected a negotiation process, and while there will still be some negotiating, it isn’t quite the way it was in the past.
You need to come to the table with your highest and best offer first. These days, homes that are priced well will move fast, and receive multiple offers. Offers are low won’t even be considered.
New rule #6: Find a realtor with connections, expertise and serious negotiating skills
Don’t let this tough housing market get you down when you seek out an experienced Realtor with strong community connections and serious negotiating skills.
New rule #7: Expect the process to take a little longer
The latest report from the National Association of Realtors shows that the average amount of time buyers can expect to spend looking for homes is 8 weeks. Plan on a minimum of 8 weeks so that you don’t get upset if and when the process takes longer.
