October 28, 2022

The real estate industry has been through its ups and downs, but real estate housing market success are much more stable and profitable than other investments. The real estate housing market has a solid grounding and offers a lot of potential with its increased number of sellers and buyers every year. However, the state of the housing market decides when it is the best time for buying and selling a house. Because of the highly competitive nature of the housing markets, along with rising mortgage rates, buying a home can be a difficult process.  From the latest 2022 real estate housing market predictions, we have seen a 53.7% increase in the monthly mortgage payment rates. This ultimately means that to buy a home in this competitive market, you will need some tips through which you can navigate the market and succeed in becoming a first-time home buyer. Before going through these tips, it is important first to grasp what a seller’s market is and how it can prove a challenge or a benefit for you. About Real Estate Housing Market A real estate housing market can be neutral, a seller’s, or a buyer’s. A buyer’s market in real estate is one with more properties and fewer interested buyers. A neutral housing market has a normal inventory with comparable sale prices almost equal to the listing prices. However, considering buyers’ perspectives, it is important to understand a seller’s market. A seller’s housing market has plenty of buyers looking for an opportunity to purchase a property from a limited pool of houses. The listing prices are high, and you might have to pay more than the asking price. Properties get sold within days. This, in turn, leads to fierce competition between the buyers, where the best offer with the best behaviors wins. Related Post – Will the housing market crash in 2023 8 Crucial Tips for Real Estate Housing Market Success for Buyers We have compiled some tips to help you secure your position as a buyer in this fierce real estate market. Get a Pre-approval for the Mortgage The first and probably the most crucial thing to do before you even commence your house hunting is to get a pre-approval letter from the lender on your mortgage. Remember that getting pre-approved and pre-qualified are two different things. Pre-qualification does not require a lender’s approval; it is based on the information you provide. Pre-approval includes income, credit score, and other verifications from a lender to give you an idea of your affordability to buying a new place. So how else does a pre-approval help you with buying a property? When the housing market is neutral, you don’t necessarily need pre-approval, as you will have enough time to sit through the process and wait for the approval. However, in the case of a seller’s market, you will not get much time. Because, on average, the closing time of property in a seller’s market is between 42 to 46 days. The lesser this period is, the more likely you are to close the deal in competition with other buyers. The pre-approval enhances your chance of getting the home of your choice and can also speed up the whole process of closing the deal. Another important aspect here is that some realtors will not prefer working with you if you do not have mortgage pre-approval. The sellers will also avoid such buyers who have gotten approval from their lender beforehand. Look for the Best Real Estate Agent in the Market You will need a great real estate agent to help you out through the process of buying a house in a competitive market. They are invaluable and have great connections with other people in real estate. The best option is to hire a realtor who has specialized in your targeted area. In this way, they will have an inside knowledge of that local market which can help set the offer. To find a good realtor, you can either start online by reading their reviews and checking their testimonials. Most agents use social media management packages, so it’s important you find as many good testimonials as possible. Another way to find a good agent is by consulting your close friends or family members. Related Post  Essential Skills You Need To Become A Successful Realtor  Develop Connections in the Real Estate Market The real estate market runs on connections. Stay in contact with different people in the market. It will reflect that you are a serious buyer. Additionally, you will be able to maintain a good position in the market. So, by doing detailed research, you will get to know the market trends and stay updated about recent property listings. Furthermore, it will give you an idea of FSBO properties in good neighborhoods, which are not entirely a bad option. Broaden your Search Area and Criteria for House Hunting In a seller’s real estate housing market, it isn’t easy to find the home you have in mind since many buyers are in line already. Your best option is to broaden the house-hunting search area, improving your chances of success. Keep your wish list open and re-prioritize the opportunities if you find an affordable one in a different location. If you stay fixed on a certain locality almost out of your reach, you will miss out on other great opportunities. Try stepping out of that ideal location. And there is a good chance that you will find a home with better square footage and a better price. Be Financially Flexible in the Seller’s Market According to the National Association of Realtors (NAR) data in 2021, around 29 percent of the properties were sold above their asking price. So, it’s better to stay familiar with the market’s competitive nature and prepare your budget accordingly. In addition to making an offer above the asking price, there are other things you can do to make your offer stand out amongst the offers of interested buyers. Try building a good relationship with the