In a tight market, homebuyers often find themselves competing against each other for the same home. When there are not enough homes and too many buyers, home prices can rise quickly. In fact, during times like these, prices can frequently exceed their original asking price.
We all know that there are times when the housing market is hitting rough waters, and it’s fairly difficult to secure a home in a given market. In such scenarios, there’s not much an average first-time home buyer can do, other than knowing what to expect. But with some foresight and research, you can still find ways to turn the odds – even if it means waiting for a better time.
Get prequalified for a mortgage.
You’ll be able to make a firm commitment to buy and your offer will be more desirable to the seller.
Stay in close contact with your real estate agent.
Your agent will be on the lookout for the newest listings that meet your criteria. Be ready to see a house as soon as it goes on the market — if it’s a great home, it will go fast
Be ready to make a decision.
Spend plenty of time in advance deciding what you can afford and must have in a home so you won’t hesitate when you have the chance to make an offer.
Bid competitively.
Your first inclination may be to start out offering something less than the absolute highest price you can afford, but if you go too low in a tight market, you will likely lose out.
Keep contingencies to a minimum.
Restrictions such as needing to sell your home before you move can make your offer unappealing. Remember that, if the market is tight, you’ll probably be able to sell your house rapidly.
Don't get caught in a buying frenzy.
Even though you want to make your offer attractive, don’t neglect inspections that help ensure the house is a sound investment.
Have more questions about buying a home in a tight market? Contact us!