The real estate market often fluctuates. Sometimes it’s a buyer’s market. Other times, it’s a seller’s market.
During a seller’s market, the demand for homes is high while the inventory is low. Because of this, a lot of sellers find themselves in a bidding war. It is possible to get the home you’ve always wanted, but you need a plan in place to avoid making mistakes.
Here are 3 mistakes to avoid when buying a house in a seller’s market.
In a hot market, most buyers find themselves in a multiple offer situation. It is not uncommon for buyers to lose out on home after home. Because of this, some buyers end up offering more out of desperation.
Desperation has no place in a home buying transaction. Given that buying a home is one of the biggest transactions you’ll have in this lifetime, you don’t want to spend any more money just because you were desperate to land your dream house. There are a lot of properties out there. You are sure to find your dream home at the right time. If you failed to acquire that property, then it’s not “the one”.
Buying a house is the big leagues. It’s not enough to ballpark your income or run the numbers in your head. You need to be crystal clear and decide how much you can afford.
Sit down and do the math. Use an online money app or keep an income/expense journal. Your goal is to get a clear picture about how much money you can spend on your home on a monthly basis. This is especially important in a hot market, where you may need to make a decision about whether to increase your offer price on a relatively short notice. If done wrong, it may lead to financial regrets that may last a lifetime.
In a hot market, great homes come on and off the market at a lightning-fast pace. Hesitation can be costly in a hot real estate market. Some buyers would window shop for ages or sit on the fence because they believe that something better would come right along. But if you do so, you may end up losing out on a property you truly like. While there are hundreds of lovely homes that would meet your needs and specifications, we highly recommend that you act fast and check out the property if you find something you really like.