Real Estate 101: Buying in the Seller’s Market

469 superior_listingLast time we talked about selling in the current Seller’s Market. Today, we’ll cover things if you are buyer.

Feeling nervous about pulling the trigger and buying a new place? Fear not! It’s so exciting to be looking for a new place no matter when it’s happening, and this post offers some quick suggestions for how to make sure you find that perfect place, even in an environment with a little more competition and a little less selection than in other times.

Are You Ready Financially

Have you talked to a mortgage broker and are you pre-approved? {Not just pre-qualified}

Have a clear understanding of both what you are pre-approved to spend but also, what are you comfortable with spending on a monthly basis? Those might not equal the same number and it’s important to talk this through with your realtor.

Don’t start looking at places without a clear understanding of what you can afford to spend. It’s a waste of time and energy. Great example: if you look at places that end up being above your budget, you’re setting yourself up for frustration and disappointment when you have to adjust down. Nothing will measure up to what you saw in the beginning, which you were never going to be able to have anyway. Conversely if you look at places that are below what ends up being your budget, you are wasting time looking at places and might miss your place because someone else put an offer while you were off looking at places you didn’t like when you could have been in a whole different price bracket {where your dream house was waiting for you}, don’t let that happen!

Things to keep in mind:

A good realtor will have recommendations for mortgage brokers and real estate attorneys that they know and trust. Find your realtor first and avoid having to navigate this entire part of the process on your own, easy peasy!

Be clear about what you’re looking for

Having certainty is the way to make sure you know your place when you see it, and that you don’t wait, or hesitate… only to realize that’s the one, days or weeks later when someone else has already put an offer on it. Talk about disappointment. This one is hard to recover from.

Especially in the current market, the way to make sure you find, and get, your new dream place, is to go through the process of getting clear about what you want and what you don’t want. What are the must haves? What are the non starters? What would you like but could live without? What are you thinking you might want to create or transform yourself, if anything…  This is not something you can effectively do as you’re out going from one house to the next trying to keep them all straight. You need to be able to walk through each place and know, it’s a contender, or not – right away.

All of my clients have homework, and we review it together. We create a thorough list, what are must haves, what are nice to haves… sorting out all of the in-betweens too. These things might change as we start to see different options, but it’s a starting point and it sets the tone for success and getting a lot more of what you want in your new place.

Things to keep in mind:

Be patient, but ready to move when you find your new place. It may take a little longer to find your perfect place these days, just because of the reality that there are more buyers than homes for sale. But if you are prepared, you’ll be ready to make an offer when you do see the one.

Speaking of which…

Are you ready to make an offer

If we see your new place today, are you ready to put in an offer?

This question might seem obvious, but it’s one I have to ask and sometimes the answer isn’t yes…

There is no point in going to see places if you’re not ready to pull the trigger. This is a huge deal. If you’re not ready, or if you find your place and then you start to handle a lot of doubt over one thing or another, guess what? You won’t get that place… or any place, because you aren’t certain. Or you’re not really ready to buy. None of that is wrong, but it’s important that you get to a point that you’re ready to move forward, put an offer and buy a place, or you risk finding your place, and then losing it, because you aren’t quite ready yet.

Be ready to make an offer when you do find your place. It’s a competitive real estate market right now, especially if the place you like has a an ounce of appeal and is a good price, other buyers are likely interested also. Don’t let indecision keep you from having your new dream house.

Things to keep in mind:

Neutrality… it’s magical. Keep a cool head and stay grounded. Until you’re at the closing table anything can happen. Make sure to not get caught up in the frenzy of competition with other buyers or just accidentally letting all of your energy go right into this new place, as amazing as it might be. I truly believe that things that are meant to be, work out, and there is a little bit of a ways to go between making that offer and getting the new keys. So deep breaths and stay calm!

Multiple offers are not uncommon these days, stay grounded and be clear about how much you are able and willing to pay.  If you are in a multiple offer situation you can only make your best offer {which is not always about the highest bottom line} and then in a very real way, it’s out of your hands… but really this is the case and there is never a guarantee that an offer will be accepted. Welcome to the thrills of buying a new house. But if you do the things listed above you’ll be ahead of a lot of the competition and well on your way to finding your new dream house, time to get excited!

 

 

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