If you’re planning to buy a home in the near future, plan to be a part of high activity. Sixty percent of this year’s home sales will occur between May and August, so it’s critical you know what to expect when you jump into the homebuying market. Here are three tips compiled from our local market experts.
1. Know the market stats
We are facing low inventory, so the first step is to be ready to buy when you enter the market. In many areas, there is little time to mull over a home purchase – buyers should be ready to submit a bid after a first or second walkthrough.
Of course, it will be easiest (and less risky) to bid on a home if you understand your hyperlocal market. So before you begin the home search process, ask your agent for the “norms” of the area where you are searching. By understanding the average price of homes, how long they are likely to stay on the market, and if homes are seeing multiple offers, you can use that knowledge to guide your timeline and first offer submission.
2. Try not to get emotionally attached
Unfortunately, today’s market means that some buyers are getting outbid – often multiple times – prior to getting approved for a purchase agreement. While it’s expected that you’re excited about the home search process, it’s also likely that you may lose a home, or a few, before you end up in contract.
Remember that you can only bid your budget and hope for the best. While it’s easy to get wrapped up in “the home of your dreams,” the reality is that many homes out there fit the bill for your needs. Be patient, and work attentively with your agent, and the right one will come your way.
3. Learn your lessons
If you do lose a bid in multiple offers, ask your agent how you might have been more competitive. Was it simply dumb luck – a walkthrough scheduled minutes before yours – or could you have bid higher, offered more up front, or discussed fewer contingencies? When you’re looking at a small pool of homes, it’s likely that there is a group of buyers out there just like you. By dissecting where you fell short, you can get the upper hand on those buyers, and bid smarter next time.