If you want to buy a house in a hot housing market it can be frustrating unless you understand what it takes to close a deal. There are several things that you will want to have in place before submitting your offer to a seller. These things are important because they will establish your offer to buy as being strong and fully able to close on time, without issues.
If you do not make sure your offer is strong it can make buying a desirable property in a hot housing market near impossible.
Do You Need A Mortgage?
In hot housing markets, the homes for sale are being bought up fast. In fact, many properties get multiple offers within the first few hours of being listed for sale. Making sure that you spear attractive to the sellers is paramount, since you will be competing with other buyers who want the house as well.
If you need a mortgage, then it is recommended that you get pre-approved by a reputable mortgage company beforehand. Just to be clear, being pre-approved is different and better than just being pre-qualified for the home loan. To get pre-qualified is easy and may not even require that you submit any documents or supporting paperwork. On the other hand, being pre-approved means that you have worked closely with a mortgage company and have already submitted all the necessary documents, so the mortgage will most likely go through.
Of course, if you can pay for the house in full, cash offers are the strongest and sellers will pay them the most attention in hot housing markets. Especially if the offer is at list price or over the list.
Are You Moving from Out of State?
In cases where you are moving from out of state and into a hot housing market like those who move from New York to Florida, can you see the property before making an offer? Many sellers are skeptical of offers that come in for the full price, which is sight unseen. In other words, you have not even seen the house for sale because you are not in the same state. You can make your offer stronger if you have a relative or someone else you trust, who can preview the property on your behalf. A seller is more likely to pick your offer if someone has seen the property and loves it.
Can Large Dow payments Help?
Yes, if you are doing a conventional mortgage with 20% down which is typical for these types of loans, but you can put much more down, you should do so. If a seller sees that you are preapproved for a conventional mortgage with 50% down it shows that you are more invested in the property financially and more likely to close on the mortgage. Plus, the buyer’s mortgage stipulations will be less because of the same theory.
Are You Asking for Seller Concessions?
There will be times that you see some homes for sale that are listed on the MLS, AS-IS, but need repairs or other things done to bring them up to your liking. However, in hot housing markets, you may not be able to request that the seller make the necessary repairs or upgrades. Remember that sellers will most likely get lots of offers from buyers, and investors who are willing to purchase the property without needing the seller’s help. These types of offers will be more attractive to a seller who wants to make the most money they can, with the least amount of work possible.
Making sure that all your ducks are in a row before you make an offer to buy a house will greatly enhance your chances of purchasing the property you want. It is always advised that you contact a local Real Estate professional, who can properly guide you the all the nuances a hot housing market presents. Being able to navigate these challenges will bring the dream of homeownership into a reality for you too.