A hot property market indicates a period in the real estate pricing cycle where the advantage goes to the seller, rather than the buyer. This scenario occurs when there is greater demand for houses than the supply of homes for sale. If you are buying into this type of market, then you need to ensure you are getting the best value.
The first thing to do is learn how to identify a great deal when you see one. Do your research and examine sales for at least the past three months in the area you wish to purchase. If a home that you are interested in has a listing price of $120,000 but other homes in the area are only going for $90,000, there is a good chance the home that you are looking at is overpriced. A home that is overpriced will have a difficult time being appraised for what is needed.
Getting the right agent is a must as they will give you every little detail you need to know to write up a compelling offer. Plus, they will also be able to guide you into making the best decisions. Find a local real estate agent that is familiar with the area, different neighborhoods in the area, the schools, and more. Their knowledge is incomparable.
Use logic when making your purchasing decision. If you fall in love with a house, you are more likely to make a ridiculous offer and pay too much. Reducing your decision to cold hard logic will help you get the best value.
Set your budget and stick to it. It's a seller's market and this means you won't get your dream home at a price that is a fraction of its value. You have to accept that sellers are only going to take full price, or close to it, so only look at homes with prices that fit within your budget.
Get yourself into a position where you can offer more cash up front. A higher cash deposit can be the deciding factor on whether your offer gets accepted or not. The greater amount of cash you have to offer the stronger your offer will be.
Don't overlook a home for sale that is a fixer upper. Sure, it may need a coat of paint or a new driveway, but if you can get it at the right price, the investment may well be worth it. And don't forget, many renovations can dramatically increase the value of a home.
Consider if buying a home now is worth the stress. A sellers' market often means you are going to be on the hunt for quite a while as offer after offer gets rejected. It may be better for your stress levels if you wait until more homes become available. Real estate values go up and down in cycles so you may even get in on a low point if you decide to wait.
Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com. To contact one of our real estate agents call 734-426-6060 today.