Stick to a budget – Before beginning the house hunting process, prospective homebuyers should receive preapproval from one or more lenders to verify the amount of money they are qualified to borrow. After taking into account additional costs of ownership such as taxes, utilities and insurance, buyers should determine a final budget they can comfortably afford. When listings are lacking, bidding wars can drive up prices, so buyers must be prepared to walk away if the asking price surpasses their budget.
Be ready to make a decision quickly – In a seller’s market, homes rarely stay on the market long, so when a house that is in their budget and checks off all of their needs come along, buyers should not hesitate. Buyers should be ready to submit an offer quickly, or they may risk missing out on the home altogether.
Bid competitively – It is tempting to submit a low offer as a starting bid, but in a seller’s market buyers need to put forward their highest offer from the very beginning or they are likely to lose out on the home. It is also important to remember that in multiple bidding situations it is not always the highest offer that is most attractive to the seller but the one with the fewest contingencies.
Work with a realtor – It is important to work with an agent who is familiar with the market in which you are searching. They are familiar with the areas and neighborhoods home buyers are considering. Realtors are the most trusted resource for real estate information and can give buyers the competitive advantage needed in a tight market.