With inventory levels struggling to keep up with demand in property markets in the lead-up to Christmas we give our tips for buying in a hot market.
In this environment it is especially important to keep your emotions in check and not make rash decisions just because the market is moving quickly.
It’s also important to make yourself as desirable as possible to the seller to stand out from your competitors.
Here are REBAA’s stop strategies for making buying easier in this competitive environment.
1. Get pre-approved finance
Being pre-approved by a mortgage lender is a great way to show sellers that you’re not only serious about buying, but that you have the funds for the purchase ready to go.
2. Don’t overlook due diligence
Due diligence remains essential during the home buying process, and speeding things up carelessly to take advantage of a deal can end up costing you much more down the line.
3. Don’t give low-ball offers
Making low-ball offers in a rising market is a sure way to be ignored. Obviously price becomes and major factor and while you do not want to overpay for a property, making a low-ball offer means that you will not be taken seriously.
4. Be decisive and ready to act
In a rising market, it’s all too easy for more prepared and confident buyers to act early and beat you to the negotiating table whilst you’re still mulling over the property a few days later. If you have done your research and know it’s the right one, don’t be afraid to offer and exchange at the first inspection.
5. Don’t complicate the conditions of sale
Avoid asking for favours or adding complicated contingencies to the deal. This is not the time.
6. Get an independent advocate
Employing a buyer’s agent can help level the playing field and give you the edge you need in a competitive market. Not only can they assist with finding potential homes in an area, they can also help you with negotiations and bidding.
