When a real estate market is fast paced, homes sell quickly and buyers must make swift decisions to avoid losing a home that they have their heart set on purchasing. Following are 6 tips for buying in a fast paced market.
1. Know exactly what you are looking for before you start your search so that you will know you found it as soon as you see it. Sit down and make a list of must-haves, then be prepared to overlook less important aspects of a home if it fits your overall requirements of a home that you would love to own.
2. Take a look at your finances and figure out what you can afford, then approach a lender and obtain pre-approval. In a fast paced market, it is imperative that you have your finances in order. A pre-approval letter will let the seller know that you are financially stable and increases the chances of your offer being accepted.
Note that pre-approval is not a guarantee that you will get a loan. It is a letter from a lender that its preliminary qualification determination indicates that you may be eligible for a mortgage of a particular amount.
3. Hire an LGBT real estate agent. They are generally the first to know about new homes that are placed on the market and may know of new listings that fit your needs before they are made public. An agent can point those homes out to you and help you avoid bidding to late and losing the home. In addition, a real estate agent who knows his market will be in a position to help you make quick, informed decisions. For more information on hiring an agent, see our article Top 6 Questions Every Gay Home Buyer Should Ask Their Realtor.
4. Be flexible! If you only allot two days a week or weekends for house hunting, you may lose out on your perfect home. Be ready to go to showings on short notice from your agent. In a fast paced market, your flexibility can make the difference between being successful in purchasing your dream home or losing it to another buyer.
5. Do not get stuck on the little things. If the home has the must-haves that you decided on, is in good structural shape and is in a neighborhood that you would like to live in, make your bid. Updating the home to suit your tastes can come later.
6. In a fast paced market, if the home is reasonably priced and is what you are looking for, you should not offer a low bid. It would be smarter to offer the asking price rather than be outbid and lose the home. Your real estate agent can help you decide on a competitive offer that is not overpriced, and submit your purchase offer to the seller.
Note that your offer is not legally binding until the seller accepts and signs the document. The seller has the option of making a counteroffer to you if he or she does not agree to your offered terms. Contracts must include what is called “a meeting of the minds” in order to be binding. This means that, in relation to real estate, there must be an offer of either services or money and an acceptance of that offer in return for the real estate at issue. If the seller accepts your offer or you accept the counteroffer and both you and the seller sign the contract, it becomes legally binding.
Most contracts include language that dictates what happens if one of the parties default on the agreement. For example, if financing is a contingency of the contract and you find that you cannot obtain financing, you may lose any earnest money that you put down on the property once the agreement was accepted by the seller. If the seller defaults by deciding not to sell to you, you can sue him or her in a court of law for breach of contract.
In a fast paced market, everything happens quickly. We hope the 6 tips for buying in a fast paced market outlined above help you achieve your goal to purchase your dream home.