When home buyers are looking to purchase a home, they have to consider the competitive nature of the market. Some areas are more desirable, and thus more competitive when it comes to buying homes. This gives the advantage to a seller, because they are sitting on a hot commodity. Often times it makes the price on the home more strict, and gives less flexibility with the terms. Here are some tips when purchasing a home in a competitive market.
Manage Your Emotions and Expectations
The key to home buying in a competitive market is managing your emotions and expectations. The home buying process is very exciting. You are looking at the place you want to lay your head in order to build your future. It is easy to see something you want and get your hopes up, only to learn that your offer wasn’t accepted by the home owners. This happens time and again.
Learning to manage your emotions and expectations will allow the home buying process to go smoothly. There won’t be as many highs and lows making it a roller-coaster. This may take some detachment to a particular home, which can be hard. That’s why it’s always good to have multiple options.
Get Pre-Approved for a Loan
Getting pre-approved for a home mortgage loan acts as though you are making a cash offer. This can be more desirable to the home owner because there is less complications for them to collect their funds. Remember, there is a difference between pre-qualifying for a loan and getting pre-approved for a home loan.
Make a Higher Down Payment
You may want to consider putting down 20% in a competitive market. It is true that you are able to put down 3.5% on a FHA loan, but putting 20% down makes you look stronger on paper to an agent. This could be more desirable during the homeowner’s decision to accept your offer.
Find the Right Buyer’s Agent
In a competitive market, it is crucial that you have the right buyer’s agent. They are the person representing your behalf in the entire home buying process. You’ll want to have someone who is known in the local market for making deals. A real estate agent who is well known in a specific market may know the listing agents that represent the home owners. If they have previously worked together in the past, it may be easier to influence and negotiate terms.
If you are looking to purchase a home in greater Encinitas California, contact me, Linda Moore. I help home buyers get the homes they are looking for. Simply call or write me an email. I’d be happy to discuss your desires and let you know what is available.