Homebuyers might find themselves facing a housing market that is fast-paced and more competitive than usual.
Like many regions around the country, certain areas in Virginia have turned into a “seller’s market.” This means that homes are selling fast – and often at equal or higher value than the listing.
Unfortunately for buyers, a seller’s market can complicate their search. A high demand but low supply of properties can lead to unexpected obstacles when seeking your new house.
Prepare financing early
Real estate transactions can move quickly in a hot market. Buyers need to be ready to make an offer with confidence, and sometimes they need to send that offer on the same day to avoid losing their opportunity.
Therefore, it is a good idea to work with your mortgage lender and attorney on the financial details of your next transaction ahead of time. Your attorney can help you review your preapproval offers and make sure you enter the market with full information about your financing options.
Completing this step early can help you make smarter choices if buyer competition starts to drive prices up.
Set your offer boundaries
In a hot market, bids can become more tempting. Some buyers may submit aggressive offers with additional perks, such as fewer contingencies, which pressures other buyers to follow suit.
However, purchasing a property without addressing some key details – or signing certain agreements – can be a significant risk. While sellers must legally disclose certain property problems, they might not tell you everything.
Sacrificing an inspection contingency could lead to issues with your mortgage lender, for example. Another example includes a title contingency, which can allow you to back out of the deal due to legal problems with the title.
To avoid getting swept up in the excitement of a quick purchase, it is wise to carefully consider what kind of offer you are comfortable making. When you find a house you want, stick to your boundaries.
Stay responsive
As transactions move fast, missing a call might mean missing your chance to get the home you want. If you find the property of your dreams, try to keep track of any calls, texts or emails you may receive from the seller or an agent. Depending on the timing, be ready with your attorney on standby to assist with contracts, title work and other details of the closing process.