Real estate markets everywhere are showing brisk activity and some areas are experiencing record levels of sales. When your ideal location demonstrates such quick turnarounds that homes are only available for short periods of time, you are dealing with a hot market. You might need to adjust nearly every aspect of your home search if you hope to score a home right now so read on to find out how to fine-tune your selections, offers, and readiness to purchase at an accelerated pace.
Can you increase your down payment?
Doing so can send a signal to the seller that the deal is more likely to go through. When home purchase contracts have to be canceled, the reason is often a failure on the part of the buyer to secure financing. The larger your down payment, the easier it will be to get approved and sellers recognize this as a positive factor in your favor. Having a healthy down payment also amps up the level of seriousness and shows you are prepared to see the deal through.
Should you try to get a bargain right now?
Negotiating for a lower home purchase price is the tried and true way of snagging deals on homes. More and more buyers, in other words, your competition, are offering the asking price or above in order to get the house nowadays. Be sure that you know what the home is really worth by consulting with a real estate agent. You might not be as likely to get a bargain; you may instead end up paying what the home is worth. Going above a certain number is risky, however. If the home appraises at a number that is less than you will need for the home loan, the lender won't agree to make the loan. While a real estate agent won't tell you what to bid, they can let you know when the home has more than one offer pending on it.
Can you deal with an imperfect home?
Almost all home purchase contracts contain contingency clauses. Contingencies are for the benefit of both the buyer and the seller but you might want to dial back on your expectations in a hot market. Common contingencies like a home inspection and getting a loan approval are important, others may not be necessary and might only make the deal look too complicated to a seller. Reconsider contingencies and issues with:
- Making minor repairs.
- Having the seller include furniture, hot tubs, window treatments, etc in the deal
- Creating a small window of time for the sellers to move out and close the deal
To get more information for finding a single-family home for sale, speak to a real estate agent.