Once you have made the decision to buy a house, whether you are a first-time home buyer or a buyer who will need to sell their current home to purchase another, it is important to speak with your Realtor to understand all the moving parts of the process in order to position yourself in the best light possible when presenting your offer to a seller.
In this market, there is such a shortage of inventory, that the likelihood of there being multiple offers on a property is high. First step in the process would be for you to speak to a lender to get pre-approved for a mortgage. This is a must! Seller’s will not even consider your offer if you do not have an approval letter submitted along with your offer. There is a short application process the buyer would need to go through to determine what mortgage they may qualify for based upon their own personal finances, which will tell them what their budget will afford them so they can begin their home search! No sense in looking for homes priced in the $500,000 range, when you only qualify for a $400,000 purchase price. You need to be prepared, to put forth your best offer to compete in this market. If you currently own a home, and are looking to upsize or downsize for example, the lender will help you determine as you go through the approval process whether your new purchase will need to be contingent upon the sale of your current home – that’s where things could get a little tricky in this market. But certainly, still very common practice that a seller would need to sell their current home to purchase another. Speak to your lender and your Realtor to get the guidance you need to be able to move forward prior to making an offer that may give you the competitive edge you need to “win the home” even in this market.
We are in a fast-paced market, so you need to be a ready and prepared buyer if you are serious about purchasing a home. I have been very successful in helping my buyers achieve their goal of homeownership … even in this market. An experienced Realtor will know some of the creative ways to structure your offer to give you a leg up on the competition.