Today’s real estate market in Houston is competitive for buyers. A lot of home buyers have been putting offers on homes and they aren’t getting the results they were hoping for. Some homebuyers may be ready to give up on the home buying process altogether. However, due to rising inflation and rising mortgage rates, we know this isn’t a great approach either. Our friends, Austin and Jonathan, at Network Funding make the case from a mortgage perspective pretty well in their recent Buy Now Or Wait? video (see below).
In a market such as this one, there are two things you can do to be successful: be patient and be prepared. We’ve got some pretty good ideas we can discuss with you to help improve your patience. Meditation, stress balls, piñatas, and punching bags come to mind. However, today, we’d like to focus on how to be prepared.
Know what you need and want
First, it is essential that you know what you’re looking for in a home. After all, how can you find what you want if you don’t know what you want? Before you start making offers, get clear about what you need and what you want. Put your needs first. These could include certain neighborhoods, the number of bedrooms or bathrooms, or other home features that would be deal-breakers for you. You should also consider what you want, such as room for a backyard pool or a finished basement. While these items would be nice to have, they aren’t necessarily deal-breakers. Make a list of your needs and wants so that you can compare houses during your search. This will also help ensure you don’t get caught up making too many compromises in this limited inventory environment.
Get pre-approved with a reputable and know the products available
As an experienced listing broker, Norhill Realty knows what home sellers are looking for. One of the most important factors when assessing multiple offers is the likelihood of the buyer getting to closing and funding. They want to get to closing. Making sure you are preapproved with a reputable lender who is willing to communicate directly with the Seller’s agent can make all the difference. Furthermore, some lenders have the ability to move very quickly. Like 10 days quickly. That efficiency is not only a testament to their service level, but also can be very entising for a seller who is ready to move quickly.
Keep your emotions in check
Buying a home is one of the biggest financial transactions you will ever make. It’s important to think of it as a business deal. Yes, you are buying a home that will become the center of your family life. You will make many memories and celebrate many milestones in this house. But don’t get swept up into your emotions. Try to maintain a sense of detachment so that you can make sound decisions. If you’re struggling to maintain an emotional distance, then lean on your agent for help.
Furthermore, a good lender can help set a realistic budget for yourself. You need to know how much house you can afford so that you don’t overextend yourself.
Prepare for a bidding war
As we said above, there aren’t enough homes for sale in today’s market to keep up with demand. The home you love will also be the object of affection for other buyers, too. Your offer will probably not be the only offer a seller receives. You should mentally prepare yourself for a bidding war when you put in an offer. Understand how the home buying process works so you know how you can sweeten your deal. It isn’t all about the top offer price. As we mentioned before, sometimes it is how quickly you can get to closing. Other times it is how effectively you and your agent communicate with the seller and their agent.
Work with an expert
Finally, one of the best ways to be competitive in today’s market is to work with an expert real estate agent. Your agent should be in tune with the local market you are interested in so they can advise you through every step of the process. The process of making an offer can move quickly, and having a pro on your side can help ease the stress.
If you are looking to get started with your home search or pick it back up, let us know. At Norhill Realty, our agents have had extensive training and we have a lot of experience with active real estate markets. You can feel free to call us at 713-869-5700 or fill out the form below and a knowledgeable agent will reach out to you.