How to successfully navigate a crowded real estate market
Posted on Monday, December 22, 2014 at 10:32:01 AM
Builder confidence in the housing market is on the rise, according to the National Association of Home Builders. Reasons for the surge include low residential financing rates, home prices and job creation. For consumers, this could mean an influx of buyers and a crowded market, especially with these favorable conditions and spring on the horizon.
To help potential buyers out as they scour the market, Home Loan Investment Bank's Patrick Deady outlined a few useful tips. He explained that one of the first steps a buyer should take is to explore towns and neighborhoods to look for possible homes.
"In doing so, the prospective homebuyer can narrow their search for a home and be more efficient," Deady noted. "Once the buyer determines the area they would like to buy in, they can narrow their interviews of Realtors to those professionals who specialize in the area they would like to buy a home in. Also, the prospective buyer should meet with a mortgage professional to determine their price range and get advance notice of any items in their credit or asset background that may need attention."
In many cases, buyers will encounter competition as they target a specific home for sale. In order to gain an edge, Deady recommended residential financing pre-approval, among other steps.
"A buyer can create an offer that stands out by procuring a pre-approval from a mortgage professional to accompany their offer," he explained. "In addition, some buyers include a personal letter which expresses the reasons they want to buy the home in question. Sometimes that personal touch helps the buyer stand out with multiple offers."
Figuring out a price range is also critical. According to Deady, this means looking over a few key components.
"The financial elements that determine how much a person can afford include monthly income in relation to monthly debt, as well as assets which determine down payment and reserves," he pointed out.
Overall, buyers can find success in any market. If it is a bit crowded, these tips can help streamline the process moving forward.