Those of us who have been in the real estate business for quite some time, have experienced the lean markets and the hot markets. Each type has its own challenges. In my market area, we are in a hot, hot, hot real estate boom.
This post is to share some wisdom and insight as you navigate a hot market as a buyer or a seller.
- Make sure you are using an agent who thoroughly knows the market you are seeing to live in as they will have insights that will assist you in making the right decision for you.
- Understand your needs and communicate these clearly to your agent prior to finding a home. How large, schools, amenities in the area, traffic, yard, pets, budget, and style. The more information you can share with your agent, the easier it will be to find the right home.
- Make sure that you are pre-approved with a good lender. Have your pre-approval letter ready so when you do find the right house, you can present this letter with your offer. In a tight market, this step is essential.
- If you find the right house, be ready to present the BEST possible offer. In a hot market, your offer will need to stand out. Low-ball offers are not advised in this type of market.
- Be prepared to possibly write more than one offer as homes go under contract quickly. Keep the emotion out and stay the course.
- Discuss the possibility of receiving multiple offers. It is important to have this conversation with your agent in order to know what to expect and the strategy to handle the offers.
- While it is tempting to mark the sales price up substantially during a hot market, please defer to your agent. There are many variables to consider. Location, how the home shows, the comps in the neighborhood and, supply and demand.
- If you desire top dollar, ensure that your home is worthy of the asking price. Repairs are done, clean as a whistle, great curb appeal, uncluttered, yard maintained, and show-ready at all times.
- Understand the current market in your area. Have your agent discuss the latest comps and make sure you recognize why some homes sell more quickly than others.
- Make sure you understand the other variables besides sale price that make a strong offer. Price, of course, is key but other factors include; viability of financing, strong earnest money and down payment, closing date, other demands, or requests.
Even in a hot market, there will be challenges for both buyers and sellers. The most important ingredient is in choosing your agent carefully. Make sure your agent truly knows the area.
At Beam & Branch Realty, we know Hood County and the surrounding areas. Our agents are ready to assist you with your next real estate transaction. Give us a call today!