How to Buy a Home in a Competitive Market
The Albuquerque area housing market is still competitive, our inventory is still low, and we are still seeing multiple offers on some properties. So, it is essential and wise to understand exactly how to buy a home in a competitive market. Here are some great suggestions for increasing your chances of getting the home you want. Here are a few tips:
- Get pre-approved for a mortgage. This shows sellers that you are serious about buying and have the financial means. Having a pre-approval is much stronger than getting only a pre-qualification. A pre-approved borrower is much more likely to complete the sales process.
- Be prepared to make an all-cash offer. This is often the most attractive offer to sellers, as it eliminates the risk of the loan not closing and typically expedites the entire closing process.
- Consider any contingencies carefully. Contingencies are clauses in the purchase contract that allow a buyer to back out of the deal if certain things don’t happen or have unsatisfactory results, such as a home inspection and other inspections. Financing or a mortgage is another type of contingency, as are appraisals. In a competitive market, sellers are more likely to accept offers that waive or minimize contingencies.
- Be flexible with your closing date. Sellers may be more willing to accept an offer if you are open to closing on a date that is more convenient for the seller than it may be for you. Sometimes a lease back can be negotiated to facilitate this.
- Hire an experienced real estate broker. A good Realtor® and Broker will know the market conditions specific to the area and community. They will be able to help you find the right home and negotiate the best possible terms to help you buy a home in a competitive market.
Buying a home in a competitive market
Being competitive can be challenging, but it is possible. By following these tips, you can increase your chances of success.
Tips for buying a home in a competitive market
- Make a strong offer. This means making your first offer strong. You may only get one chance to do so. Offer a price that is competitive and even better than other offers. Provide a generous earnest money deposit or a Time Off Market offer. Keep the offer clear of any odd or abnormal requests.
- Be prepared to act quickly. When you find a home you love, be ready to make an offer expeditiously. Homes listed in a competitive market often sell within a few days of being listed.
- Be patient. Finding the right home may take some time, especially in a competitive market. Don’t get discouraged if you don’t see the perfect home immediately. Keep looking, and eventually, you will find the right place for you.
- Learn from mistakes. If you make an offer or two but don’t win the house, ask your Realtor® what can be done differently next time to avoid the misstep. A simple adjustment in how the offer is written can make a big difference. Listen and learn how to buy a home in a competitive market.
This Albuquerque Home Buyers Page and Financial Calculator may help you. Feel free to download our Free Albuquerque Home Buyers Guide