Home Buying Is Chess, Not Checkers
The data is clear; we are in a sellers market. When that is the case, buying a house is not as simple as picking out your favorite home, putting in a fair offer, and then waiting to close. That is not happening in today’s real estate market. Home buyers face fierce competition, which is unique because the winter is typically an easier season. Traditionally, there are less home buyers in the winter months, which means you can catch a deal on a new home. The big difference this year is inventory. The number of homes for sale is at an all-time low. And, this is not an anomaly. Competition between buyers is expected to last through 2022. Home buyers need to really stand out in order to close on the home of their dreams. The key to buying a house in today’s market is being strategic.
Strategy for Home Buyers in a Sellers Market
There is more competition from home buyers in today’s real estate market than ever before. It is still very possible to buy a house, but it is necessary to have a strategic plan for how you will approach the process. The team at Streamline Realty is here to give you some tips on how you can strategically prepare to buy a house.
Be Prepared
The first thing you need to do is get a pre-approval letter for a mortgage. Getting pre-approved for a home loan helps you buy the house of your dreams in a couple different ways. First, it lets you know how much of a loan you will be able to get from your lender. This lets you know the upper end of your budget, which is essential for when you are facing a house with multiple offers. It is easy to get caught up in the emotions of buying a home and potentially bid more than you can afford. Pre-approval nips this in the bud and lets you focus on houses that are within your range.
Second, it helps you stand out from other home buyers. You should go into the home buying process expecting that your offer will not be the only offer on a house. It is necessary to find ways to differentiate yourself from the other buyers and appeal to the home seller. Pre-approval sends a signal to home sellers that you are serious about buying their home and that the loan process will not take a long time. Home sellers want a good price for their home, but they also want the sale to happen very quickly.
Be Flexible
Buying a house in a sellers market means that it is important to be adaptable to what the market gives you. There is a limited number of houses available to sell, which means that you might not find a home that checks every box. It might be necessary to compromise on what exactly you are looking for in a house.
While compromise might be necessary, it should not be done on an ad hoc basis. You should build flexibility into your home search. Flexibility means having an honest conversation with your real estate agent about your needs, wants, and must-haves. Ideally, you will find a house that meets all three. However, it is likely that you will have to pick and choose. Before you even look at houses, know which items are things you are willing to compromise over and those that are red lines. This will narrow your search. More importantly, it will help you make quick decisions. Houses are being sold in a matter of days, so knowing your priorities will help you decide in the heat of a bidding war if it is time to up the ante or simply walk away.
Work With Experts
Buying a house is a fierce competition between you and other home buyers. However, it is very important to remember that you are not alone. If you are using strategy to buy a house then you have assembled a team of experts to work on your behalf. A vast majority of us know a real estate agent or a mortgage broker, but familiarity should not be your main consideration. Real estate agents and mortgage brokers are professionals, but not all professionals are created equal. Just like some lawyers are better than others or some doctors are better than others, some real estate agents and mortgage brokers are better than others. In a sellers market, you want the best so that you can have every advantage possible.
Final Thoughts
If you are trying to buy a house anytime between now and the next year, you need to approach it like chess and not checkers. In checkers, you are reacting to the moves of the other player. In chess, you are making strategic plans and thinking several moves ahead. Home buyers need to do the same thing. The real estate market is more competitive than ever, but buying a house is more than worth the challenge. It is possible to buy the house of your dreams, but it will take some planning and the support of an incredible team. If you are in the market to buy a house and you want an expert team to help you craft your home buying strategy, contact us. The team at Streamline Realty is here to help you checkmate the competition.
