A competitive real estate market can mean bidding wars, sky-high final selling prices, and a lot of stress. It can be difficult to navigate a hot seller’s market as a buyer, especially if it’s your first home purchase.
Here are some strategies that can help you find your dream home while keeping your cool.
Determine Your Budget and Stick to It
Before even beginning your search, you’ll need to determine your budget. Keep in mind that you won't just be paying the price of the home, but also closing fees, property taxes, potential renovation fees, etc. You can meet with a mortgage advisor to get a better idea of what your budget should be.Once you’ve determined your budget, it’s important you stick to it. It’s very easy to get swept up in a competitive market and find yourself looking at or offering on houses out of your price range. If you’re not in a rush to buy, then you can afford to be patient and wait for the right price on the right home.
Get Pre-Approved for a Mortgage
Once you get pre-approved for a mortgage, your price range will be abundantly clear. Getting pre-approved can also give you an advantage over other buyers when putting in offers, as it shows sellers you’re a serious and qualified buyer.
Work With the Right Agent
Find an agent who suits your needs and is familiar with the area you’re looking in. They’ll be able to provide valuable insight about negotiations and conditions. Agents also have insider access and knowledge of off-market properties that could potentially suit your needs.Expect to Lose Out
In a competitive market, it’s entirely possible that your offer won’t be the chosen offer. This can be tough, especially if you really loved the home!
Try to manage your expectations when offering on properties and don’t become too attached right away.
Be Flexible
You may not always have the luxury of time when it comes to buying a house, so try to be flexible when searching. Try to be open to different neighbourhoods and property types, as long as they still suit your needs. When it comes to the home itself, don’t get too hung up on cosmetics. You can always repaint, redecorate, and renovate—be open to homes that may require a little extra attention!
Be willing to work with sellers regarding conditions, as sometimes an offer with the right conditions can justify offering a lower buying price.
Be Vigilant
In a hot market, homes will be put up for sale and sold like that. You and your agent should keep an eye on the market to ensure you see new listings quickly so you can book showings and make an offer if you’re interested.Your agent should be able to set you up on email alerts for listings that meet your criteria, but you can also sign up yourself on websites like realtor.ca.
A competitive real estate market can seem daunting, but with the right tips and knowledge you’ll be able to find a home you love without breaking the bank!
