If you're trying to buy a home in a hot market, you've probably already experienced some frustrations. Perhaps a property you really liked was sold to someone else before you even had a chance to ask your real estate agent for a showing, or maybe you've attended a few open houses only to feel like you're lost in the crowd. However, if you need to move sooner than later because of a new job in a different city or other reason that doesn't allow you much breathing room, you're going to need something to give you an edge over other buyers.
Below are three tips for successfully buying a new home in a seller's market.
Overlook Cosmetic Issues
Although you may be able to use them as leverage in a slow or even normal market, a seller's market really isn't the time to quibble over any cosmetic issues a home may have. Small issues with flooring, paint, cabinetry, lighting, etc. can easily be rectified once the home is in your possession. However, if the property has structural issues such as a faulty foundation, keep looking.
Be Decisive
Indecision is one of the major culprits when prospective home buyers lose out in a hot market. While you're deciding whether to make an offer on a particular home, someone else makes a firm offer, leaving you out in the cold — and this can happen in some markets even if you only hesitate for a few hours. This doesn't mean you should jump at a home that's wrong for you, but it does mean that you shouldn't hesitate to make an offer on a place that checks the majority of your and doesn't have any dealbreakers.
Consider a Bridge Loan
A bridge loan is a means to provide you with a short-term loan to provide the necessary cash for down payments and closing costs while waiting for your current home to sell. This eliminates the need to try to convince the seller to accept a contingency offer — which would essentially let you out of the terms of the contract if your current home fails to sell within a specified period of time. Sellers in brisk markets are understandably reluctant to accept contingency offers. Your real estate agent can provide you with more information about bridge loans.
Ask your real estate services company for more information on successfully buying a home in a hot market.
