4 Tricks to Buying a Home in a Crazy Hot Market

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Key Takeaways:

  • Despite the ongoing pandemic, the real estate market is more competitive than ever before—and that means buyers have to do more to get their offer accepted.
  • Want to stand out from the competition and score the home of your dreams? Our four tips can help you achieve real estate success in no time.
  • If you have any questions about buying in today’s hot market, just give us a call for even more personalized advice!

The 4 Tips Every Buyer Needs to Know in 2021

If you’ve been house-hunting for a while, you’ve probably noticed that today’s real estate market is more than just a little competitive. Low mortgage rates, high demand, and dwindling inventory have created ideal conditions for sellers—but it’s still very possible to score a fantastic deal on a home.

Want to know the secret to buying a home in 2021? Here are four tips that can help you take back control in a seller-driven market.

Get your finances in order

Calculating mortgage payments

First and foremost, you need to get your finances in order before you even consider looking at homes. Start by paying off as much debt as you can and increasing your credit score. It’s also a good idea to keep track of just how much you have saved for a down payment. Sellers are more likely to choose buyers who can put down at least 15% or pay cash.

Want to strengthen your offer even more? Get preapproved or attach a higher earnest money deposit to show a seller you’re serious about buying their home.

Know what you want

Buying a home is one of life’s most exciting milestones. However, it’s easy to get caught up in the little details—which is why it’s crucial to do your research in advance. Connect with a local agent early on to discuss your home-buying goals. A good agent will help you hone in on your budget, wants, and needs, as well as the right area or neighborhood.

Prepare for a bidding war

Negotiating a deal

According to a recent survey by Redfin, more than half of all buyers found themselves in a bidding war last year. And while the idea of competing against other home-seekers might seem overwhelming, there are a few things you can do to stand out. 

If you’re trying to score a house with multiple bids, send in your best and final offer up front. You may also want to include an escalation clause, which automatically increases your purchase price by certain increments (like a few thousand dollars at a time) so you avoid getting outbid.   

It’s also a good idea to consider homes below your budget, especially if you have your heart set on a popular neighborhood. This gives you some flexibility if you end up in a bidding war. 

Appeal to the seller

Talking about real estate

Even if you find yourself in a bidding war, it’s still possible to come out ahead. Believe it or not, sellers don’t always choose the highest offer, even if it far exceeds the original asking price. 

You can appeal to a seller’s peace of mind by limiting your contingencies, offering to pay closing costs, and letting them choose the closing date. Adding these extra bonuses might seem minor, but they can really impact a seller’s final decision.

Only Buy with the Best

Working with a top-notch agent can help you navigate 2021’s crazy real estate market with ease. So if you’re looking for some guidance, it’s time to give us a call!

Whether you’re at the beginning of the buying process or are already searching for a home, you can trust us to help you find your perfect place. Contact us today to get started; we look forward to working with you.

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What Makes Today’s Real Estate Market So Competitive?

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Key Takeaways

  • This year’s housing market is shaping up to be the most competitive on record, but the pandemic isn’t the only thing influencing the national real estate boom.
  • There are actually quite a few factors contributing to today’s hot market, including unfettered buyer demand, historically low supply, and steady interest rates.
  • Have questions about buying a home in 2021? Get in touch with us for even more personalized advice.

3 Factors That Make 2021’s Real Estate Market More Competitive Than Ever

If you’re planning a move, you might be wondering how the real estate market will change this year—and the predictions are pretty eye-opening. Existing home sales are expected to increase by 9%, home prices could rise by a whopping 8%, and mortgage rates should stay well below 4% for the foreseeable future. 

For buyers, this means you may have to work harder than usual to find the perfect place. However, this extra effort will pay off if you have a home to sell or want to take advantage of extraordinarily low interest rates. 

Need help making sense of today’s market? Here are a few reasons why real estate is more competitive than ever in 2021. 

The ongoing pandemic

Buying a home during the pandemic

A year ago, real estate experts had no idea how the COVID-19 pandemic would impact the housing market. While many predicted a crash akin to what we saw in 2008, we actually saw the opposite: a pandemic housing boom.

During last year’s lockdowns, many renters and homeowners grew unhappy with their living situations and wanted a change. This caused demand for homes to spike—and as panicked sellers pulled their listings, prices rose higher and higher.

The pandemic might slowly be coming to an end, but we’re still seeing remnants of 2020 in today’s market. And while more sellers are finally warming up to the idea of listing again, available housing supply is still at its lowest point ever.

Record-low interest rates

Dice changing rates

In late March, interest rates for 15- and 30-year mortgages hovered around 2.5% and 3.3%, respectively. Although these numbers aren’t quite as low as they were in 2020, buyers can still score a once-in-a-lifetime deal by moving now.

To put things into perspective, let’s say you’re thinking about buying a $300,000 house with a 20% down payment. Back when rates were nearing 4%, you could expect to pay around $1,200 per month for your mortgage. However, if you were to buy that same home with a 3% interest rate, your payment would drop to just $1,012—and that difference can save you tens of thousands of dollars over time.

Low inventory & unprecedented buyer demand

Sold sign

Real estate is all about supply and demand. And in today’s competitive market, an inventory shortage and swelling buyer demand have created perfect conditions for sellers. In particularly popular areas, it’s not uncommon for homes to sell just days after they’re listed, sometimes in bidding wars that go above the original asking price.

If you’re thinking about buying a home soon, be prepared to act fast. Many agents recommend getting pre-approved, limiting your contingencies, or even setting an escalation clause to automatically outbid other buyers.

Bottom Line: Now Is the Time to Move

Navigating 2021’s one-of-a-kind real estate market may seem like a daunting task, but the right agent will help you through every step of the process. Today’s buyers can capitalize on shockingly low interest rates, while sellers stand to make an impressive profit should they decide to list soon. And if you ever have any questions, we’re always here to help!

Buying or Selling Soon? Let’s Talk!

Don’t let the market keep you from making a move. If you’re ready to achieve real estate success in no time at all, drop us a line to get started. We’d love to offer you one-on-one buying or selling advice that’s tailored to your unique needs.

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