Today’s real estate market is going a mile a minute. Nobody can deny that based on how fast homes are moving on and off the market with multiple offers on each one. So how can a buyer be competitive in such a hot market with low inventory? Here are a few ways that can help you stand out and be more competitive in this market.
Meet with your lender early and get pre-approved
Getting pre-approved is one of the best ways to help your offer stand out, as well as a surefire way to smooth out the financing process. When you are pre-approved, you can quickly make an offer on a house you like. If you are ready to buy, talk to your agent and get in touch with a mortgage lender.
Prioritize “must-haves” and “wants”
In any seller’s market, buyers may have to be a little more flexible when it comes to finding and sacrificing the features they want. In today’s market, it is imperative you know what has to be in the house and what will be nice to have. If you have two kids, three bedrooms is most likely a must. If you run your business from home, a home office and high-speed internet are paramount. If you are like many buyers in the current market, having a third garage bay and/or RV storage is near the top of the list.
If you want to live on acreage, but can’t afford to build a home, you may have to focus on larger lots instead. Some buyers have to concede a two-story home in favor of a single-level in order to find a home that works. Hardwood floors may be a dream amenity, but they command a higher price than you may be able to afford.
Prepare for a bidding war
Bidding wars are the name of the game in today’s market, especially in Boise. Nationally, homes receive an average of 3.7 offers per listing. In the Boise area, that number is no doubt higher, because some homes go pending after a few days, if not the end of their first day on market. In order to prepare for a bidding war. Make sure you have a clear financial plan. Since you are (hopefully) pre-approved, you should have a clear budget in mind. Stick to the budget so you can afford your monthly mortgage payments and closing costs. In addition, it is quickly becoming the norm to submit your highest and best offer first because multiple offers come in hard and fast as soon as a home goes on the market.
Keep your emotions in check
Overall, buying a home is an emotional process. You use your emotions to judge whether or not you like the house. Bidding wars in a competitive market quickly drive home prices and emotions high. Listen to your Realtor as the voice of reason. Their job is to guide you through this stressful time using their knowledge and expertise. If the bids get too high, walk away and keep looking for another home that will suit your needs. Your agent wont stop helping you until after you’ve signed on the dotted line and have moved into your home.