Tips for Buying a Property in a Competitive Market
Being a buyer in a seller’s market can be tough! It may feel overwhelming at times, but by being prepared and knowing what you’re looking for, you can set yourself up for a smooth home purchasing process. Here are a few strategies to employ to make sure you’re ready to move quickly on a property when opportunity knocks.
Get Your Finances in Order
Do some housekeeping on your credit history. Ensure you have a strong credit score, which is very appealing to lenders. Save a healthy down payment; ideally 20% of the property purchase price, so you can avoid mortgage insurance fees. Steady employment and a consistent flow of income also support your application by showing the likelihood of great re-payment.
Solidify a Mortgage Pre-Approval
Before you can confidently begin your home search, you’ll want to have your mortgage pre-approval in-hand, so you know what your realistic budget is - and also so you can pull the trigger quickly if you find a home you love. Your mortgage broker can also let you know if you can make an offer without including a finance clause (which we’ll touch on more below).
Connect with a Professional REALTOR®
Working with a real estate representative that you trust is crucial. Your REALTOR® should offer expert advice, consistent communication and a strong knowledge of the areas you’re interested in. Working with a REALTOR® ensures you’ll know when new properties hit the market within your search criteria and when the time comes to make an offer you’ll have their professional negation skills in your corner.
Know Your Comfort Level
What is the highest amount you can offer for the property while still feeling comfortable with your monthly mortgage payments and additional expenses? Can you afford to include a higher deposit than requested? This can show the seller that you’re serious and may ease their mind that you have full intention of following through to closing.
Consider the Conditions
Are you able to present an offer with fewer conditions? Many sellers would be impressed with a firm offer - but before considering this option, you’ll need to be sure you understand the full implications of waiving your opportunity to include certain conditions such as financing, home inspection, etc. Ultimately, you need to protect yourself! Consider what might sweeten the deal for the sellers too; quick closings, full offer price and a strong deposit may be the items that have the sellers taking your offer.
At the end of the day, utilizing the above tips will assist with you being prepared in presenting a strong offer in a competitive market. Ready to begin the search for your perfect Shuswap home and looking for an expert mortgage pro? Connect with me today.
Chad Eliason⠀⠀⠀ 📞 250.804.9874⠀⠀⠀ 📧 firstname.lastname@example.org⠀⠀⠀⠀ 🌐 http://www.chadeliason.ca