Tips for Buying in a Tight Market

Increase your chances of getting your dream house in a competitive housing market, and lower your chances of losing out to another buyer.

1. Get prequalified for a mortgage. You’ll be able to make a firm commitment to buy and your offer will be more desirable to the seller.

2. Stay in close contact with your real estate agent to find out about the newest listings. Be ready to see a house as soon as it goes on the market. Quality houses in good areas do not last very long at all.

3. Scout out new listings yourself. Look at Web sites such as REALTOR.com, browse your local newspaper’s real estate section, and drive through the neighborhood to spot For Sale signs. If you see a home you like, write down the address and the name of the listing agent. Your real estate agent will schedule a showing.

4. Be ready to make a decision. Spend a lot of time in advance deciding what you must have in a home so you won’t be unsure when you have the chance to make an offer.

5. Bid competitively. You may not want to start out offering the absolute highest price you can afford but you don’t want to offer too low either. In a tight market, you’ll lose out.

6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or requesting to delay the closing until a certain date can make your offer unappealing. In a tight market, you’ll probably be able to sell your house quickly. Another option is to speak with your lender about getting a bridge loan to cover both mortgages for a short period.

7. Don’t get caught-up in a buying frenzy. Just because there’s competition doesn’t mean you should just buy it. We want your offer to be attractive while keeping the proper prospective.