How to Handle a Hot Market - What Buyers Should Expect
If you’re paying attention at all to the real estate market right now then you know it’s extremely hot. What we mean by, “hot” is that there is a limited supply of properties for sale with a very high demand. What this means is that when a property hits the market it doesn’t stay there long at all. In many cases it’s not even taking a day or two to sell a home but rather just several hours. If you find yourself in a “must buy” position during the current climate here’s what you can expect.
1. Expect to work with an agent. Agents are in constant communication with sellers who are considering listing their homes, this works to your advantage for several reasons. The first reason is, the agent can give you a heads up that a property that matches up with your wish list is about to hit the market, means you can be one of the first to schedule a showing. Another reason it’s wise, is because when an agent is confident, they have buyers they can communicate this to the potential seller which in turn helps motivate the seller to list.
2. Expect to move quick. When a home hits the market don’t delay. Schedule a showing that day. Here’s just one example, a recent home went on the market on a Friday afternoon, between 3:30pm and 8:30pm that same day, the home had showings every 15-minutes. Waiting even one day can mean you miss out.
3. Expect to be decisive. Purchasing a home is a big deal don’t get us wrong but if you are in that must buy right now position, you’re going to have to make very quick decisions as to whether or not the listing is the right one for you to make an offer on and again, this decision will likely have to be made within hours, not days.
4. Expect to enter into a multiple offer situation. Meaning, other buyers will have submitted offers on the same property you are after. The way to win is by making your offer the most attractive. Do this by avoiding contingencies if possible, offer a quick closing, or be flexible as to what works with the seller and always remember cash is king.
5. Expect to offer over asking price. We know that’s not what you want to hear. Unfortunately, in a sellers’ market many homes often sell for much more than the original asking price and sometimes even more than their actual appraised value. If this happens you need to be prepared to bring cash to the table to make up for what the bank won’t lend you. You may even want to open your search up for properties that are well below your original budget.
Home buying can be a stressful and emotional process especially when you have little choice but to move and the market has limited inventory. As cliché as it may sound, what is meant to be, will be. If you miss out on a potential home that just means it wasn’t the right home for you, try not to let it discourage you. We are here to help so please, reach out if you are considering selling or buying a home in this hot market!