Summer Home Buying Guide: Navigating the Hot Market
Being a seasoned agent, I fully understand the cyclic nature of the housing market, meaning summer is one of the most active times of the year. Centuries of longer days, school breaks, and warm weather make this a pinnacle real estate season. However, trying to successfully buy a house during the summer months will take a strategic approach. Whether this is your first home purchase or looking to make your next home purchase, here is your comprehensive guide to making smart moves in a competitive market.
Understanding Summer Market Dynamics
Summer is a time when the real estate market is abuzz with activity. Competition is fierce. Families’ desire to relocate before the next school year kicks off is great, and sellers are well aware of this. Houses tend to sell more swiftly, and often for top dollar, than at other times of the year. To successfully navigate this type of market, you need to be prepared and well-informed.
Get Your Finances in Line
Have your mortgage professional provide you with a pre-approval letter first thing. This, in addition to defining your budget, will show sellers that you are serious about buying a home. By doing so, this may make the difference between you and another buyer vying for the same home. Make certain that other potential homebuyers are only getting pre-qualified or haven’t started the process at all.
Check on Credit
The advantages of a good credit score range from building to reducing the interest rate you are given. A good credit score can save you thousands of dollars over the term of your loan by significantly lowering your monthly costs. In the event of any discrepancies, identify these on your credit report and take steps to enhance your score.
Define Your Needs and Wants
List your must-haves versus nice-to-haves. This distinction will allow you to narrow your focus down and get distracted by features that are not absolutely necessary. Think about factors such as location, number of bedrooms/bathrooms, yard space, and proximity to work or school.
Stay Flexible
Having criteria is essential, but being overly rigid is a barrier to finding a suitable home. Summer market is quick, and flexibility is your friend. Being open to compromises concerning less critical aspects will mean more opportunities will match your goals.
Be prepared for a bidding war
In a hot market, a home may be receiving multiple other offers within days of going up for grabs.
Remain ahead of this bidding war by making a competitive, aggressive offer that play fits the value of the home given its actual worth and current market conditions. Always avoid the temptation of undervaluing the home, which often doesn’t work and only means that you might get sucked right into a bidding war and go over your actual budget.
Level the Playing Field with an Escalation Clause and Fewer Contingencies
It is advisable to put an escalation clause in your contract, which states that you are willing to sky-rocket your offer up to a certain cap if the home gets other bids.
The warning is to make you cautious and set a cap for yourself to ensure that you don’t go out of your financial comfort zone. In the same way, reducing contingencies, such as waiving home inspection and financing contingencies, can help make your offer more appealing. However, these tactics require substantial consideration to avoid any significant risks.
Timing and Flexibility Can Seal the Deal
Your ability to understand and accommodate seller’s intentions will put you at an advantage. If a seller can’t wait to sell the house and move out, they may prefer an offer that allows a quick closing, even if it’s for a relatively lesser price. However, a seller might need more time and prefer an offer with flexible closing dates.
Be Ready to Move Fast
In a bustling summer market, homes can be listed and sold within days. When you find a home you like, be prepared to act quickly. This might mean having your finances sorted, your agent on speed dial, and your documents ready to go at a moment’s notice.
Utilize Technology and Our Team
Leverage the power of technology when searching for a home. Use apps such as Zillow, Redfin, and Realtor.com to track new listings in areas and price points of interest, price reductions, and open houses. The good news? Often on those sites, you have the ability to set alerts that ping you the moment a property that meets your search criteria hits the market.
Be Ready to Move Fast
In a bustling summer market, homes can be listed and sold within days. When you find a home you like, be prepared to act quickly. This might mean having your finances sorted, your agent on speed dial, and your documents ready to go at a moment’s notice.
