The residential real estate market in Arizona continues to be one of the hottest markets in the U.S, with supply remaining low and demand high. For those looking to purchase a new home in a seller’s market, it can be challenging. Whether purchasing a primary residence, a second home or investment property, it may take additional patience and persistence. Fortunately, there are some home buying strategies that can also help.
5 Home buying strategies to consider:
1. Act Fast
In a seller’s market, homes do not typically remain on the market for very long. If you have your heart set on buying in a specific neighborhood or area, start your house hunt early and act quickly when you find a home that meets your desired criteria.
Check for listings online and watch for open house dates. When you find a listing that interests you, schedule a tour or attend an open house as quickly as your schedule allows. In hot markets, available properties do not stay on the market long.
2. Be “offer ready” with your paperwork
Getting pre-approved for a mortgage is one of the most valuable steps to take in getting “offer ready.” Knowing how much you can afford and the funds you will need for a down payment, will put you in a stronger position when you are preparing to make an offer. It can also put you in a stronger position for knowing how much room you have for negotiating.
To be considered “offer ready”, it is important to have any supplemental paperwork required for buying the home. When you need to act fast, having these affairs in order is important in a seller’s market.
3. Start with a strong offer
If possible, consider putting down a larger down payment. This tells the seller that you are serious about buying the home. Additionally, give a seller peace of mind by agreeing to any contingencies that would make their transition easier. If it helps move the sale forward and does not impact you negatively, let them get their way on the small stuff.
Another consideration in submitting a strong offer, especially when you may be competing against other offers, is to offer more than asking price. Of course, this strategy should only be considered when it is within your budget and the property will appraise for the agreed upon purchase price.
4. Personalize your offer letter
In a hot market, a seller is often considering multiple offers. To help make your offer stand out, consider submitting a personal note with your offer, explain who you are and why you want the home. Home buying and selling can be a very personal and emotional experience. Letting a seller know more about the person or family that may be living in the home next can be what sets you apart from the other offers.
In a seller’s market homes sell fast paced and the process can become overwhelming and frustrating for buyers. It is especially frustrating when a buyer submits offers on multiple properties and their offer is not selected again and again. When purchasing a home in any market, you can expect bumps in the road, but this is more likely when navigating in a seller’s market. When things do not seem to be going your way, the best thing to do is to keep calm and revisit the home buying strategies outlined. Eventually, if you push forward and keep looking you will find your dream home.
If you are looking to purchase a new home, Landmark Title escrow officers are available to help with escrow and title services. To learn more about Landmark Title, visit ltaz.com.