Home Buying in a Hot Market
The past few summers the Twin Cities market has seen a very hot market with many homes going pending within hours of being placed on the market. This is often great for the home seller but very difficult and frustrating for the home buyer. Here are some tips for the buyer in a hot market:
1. Be pre-approved and have a general letter. Work with your loan officer to get pre-approved for your mortgage and only look at homes in the price range you are pre-approved for. Ask your loan officer for a general letter stating you are approved at XYZ amount. That way your Realtor can use it for different offers. This may not always be the case with FHA/VA loans so make sure you talk with your loan officer.
2. Be set up for instant MLS notices. Your agent has the decision when setting up your listing search as to when you receive new listings. Sometimes it's once a day, etc. Make sure you are set up to get those as soon as they are listed. Yes, you may get multiple emails but those few hours can mean the difference between you getting a home and you not.
3. Work with an agent that is ready to roll. Ensure your agent can show you homes ASAP. Many of us understand that is part of the job. At the same time, you need to be ready to go at the drop of a hat too.
4. Put your best foot forward. Make your first offer your highest and best offer. It is hard to "low-ball" offers in this market. Make sure the offer you make is the highest offer you are comfortable making.