A hot real estate market is one on which real estate stays unsold for less than four months or, according to some experts, for less than two months. The special conditions of hot real estate markets require buyers to adopt special measures and to behave differently than they would on a more sluggish market – here are some tips for buyers about how to navigate a hot real estate market.
Act Fast
One of the distinctive features of hot markets is that the properties are not out for sale for too long, so you, as a potential buyer, will need to make your move as quickly as you can to stand a chance to get your new dream home. Greenfield homes for sale go very quickly. This means that you need to do your homework of evaluating your financial possibilities and establishing your priorities prior to even starting to browse the market offer – that way, you will have all the information you need for making an informed decision whether or not to make an offer when you see an attractive listing.
Be Prepared to Pay More
One of the most important aspects to bear in mind when trying to find your dream home on a hot market is that you, as a potential buyer, will be facing competition, which means that you might not be able to lower the price too much. In a hot market, it is not a good idea to offer less than the listing price – the seller will have other potential buyers and might not be interested in your offer.
Make a More Substantial Deposit
Your offer as a buyer might be considered more attractive if your deposit is higher. You will have to pay the full buying price upon closing, so you can just as well pay more in the beginning to convince the seller that you are a serious buyer.
Prove Your Reliability
Showing the seller that you actually have the money to buy the property is a very convincing argument. Get your credit preapproved, possibly by a local institution and attach a proof of funds to your financial documentation and make sure the date on the documents is the same as the date on your price offer.
You Might Not Get Any Extra Remodels
While asking for small remodels, such as a new entry door or a new bathroom floor might be an option while buying on a sluggish market, where sellers are more disposed to do favors to attract buyers, on a hot market, the buyer knows that the home will sell soon anyway, if not to you, then to someone else, so they have no interest in investing into home any more.
Don’t Hurry Moving In
Giving the seller some more time to move out might make your offer even more attractive. Waiting for a couple of days more to take possession of the property is probably an affordable concession for you as the buyer, but it will make the process much easier for the seller, therefore they will find your offer more attractive and will give it more attention.