5 Tips for buying in a competitive market

Home shoppers are increasingly facing steep competition for the limited number of homes for sale.

“Attempting to purchase a house in this type of market can make the already complex process of buying a home even more overwhelming,” the National Association of REALTORS® notes in a recent release.

Read more: Bidding Wars to Heat Up This Spring

NAR offers up five suggestions for home buyers navigating today’s competitive market:

1. Stick to a budget.

Have buyers get preapproved by one or more lenders to ensure eligibility. Be sure to also take into account extra costs of homeownership, such as taxes, utilities, and insurance. “When listings are scarce, bidding wars can drive up prices, so buyers must be prepared to walk away if the asking price surpasses their budget,” according to NAR.

2. Identify home wants versus needs.

Buyers likely will need to compromise on their wish lists when competition is tight. For example, buyers may have to compromise on amenities like stainless appliances or hardwood flooring, which can always be added later. “However, if a buyer wants to be in a specific school district or have a decent-sized backyard, those cannot be addressed later and must be taken into account during the house hunting process,” according to NAR’s tip sheet for buyers.

3. Be prepared to make decisions quickly.

Homes rarely stay on the market long in a seller’s market. Buyers should not hesitate when they find a house that matches their needs within their budget. Submit offers quickly.

4. Make bids competitive.

A low offer as a starting bid won’t likely work in a seller’s market. Buyers need to be ready to put forward their highest offer from the beginning or they may lose the home. In multiple bidding situations, the highest offer doesn’t always win either. But the bid with the fewest contingencies often becomes the most attractive to sellers. “Removing restrictions related to the sale of a current home and being flexible with things like the move-in date can make a bid stand out to a seller,” NAR notes.

5. Find a REALTOR®.

Buyers may need to be reminded about the importance of working with a real estate professional. Real estate pros are familiar with the areas and neighborhoods in the local areas. “They can give buyers the competitive advantage needed in a tight market,” NAR states.

Source: realtor.com®

Gallup: Real Estate is Best Long-Term Investment

Every year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a choice between real estate, stocks/mutual funds, gold, savings accounts/CDs, or bonds.

For the fourth year in a row, Real Estate has come out on top as the best long-term investment! This year’s results showed that 34% of Americans chose real estate, followed by stocks at 26%. The full results are shown in the chart below.

The study makes it a point to draw attention to the contrast of the sentiment over the last four years compared to that of 2011-2012, when gold took the top slot with 34% of the votes. Real estate and stocks took second and third place, respectively, while still in recovery from the Great Recession.

Bottom Line

As the real estate market has recovered, so has the belief of the American people in the stability of housing as a long-term investment.

7 Graphs That Show the Real Estate Market Is Back

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  • Distressed property sales fell to its lowest number since NAR began tracking it in 2008.
  • With fewer distressed properties, sales are up in all price ranges except the $0 – $100K price range.
  • Interest rates are still at historic lows, for many, now is the time to buy.

Do You Know the Impact Your Interest Rate Makes?

Cost-of-Interest

  • Interest rates

    have come a long way in the last 30 years.

  • The interest rate you secure directly impacts your monthly payment and the amount of house that you can afford if you plan to stay within a certain budget.
  • Interest rates are at their lowest in years.
  • If buying your first home, or moving up to the home of your dreams is in your future, now may be the time to act.

Home Ownership: Great Investment

Home Ownership

How to Create Family Wealth

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Cost of Land in the US in the Past 40 Years

Have you ever wondered how much it would cost to buy an average piece of land in your state 40 years ago? Click on the map to find out.

land aquisition

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Cost Of Owning A Home Over The Decades

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The Top 5 Benefits of Buying and Holding Residential Investment property

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