Idaho Buyers: 3 More Tips for How to Navigate a Fast-Moving Real Estate Market
In our last blog , we covered how to spot a fast real estate market and three tips for buying in a fast-moving real estate market like doing research, hiring a good real estate agent, and knowing where you can compromise. We’re continuing the conversation with three more hot tips for prospective homebuyers in this fast-moving real estate market!
3 More Tips for Buying in a Fast-Moving Real Estate Market
1. Do A Full Underwriting
Get ahead of the game by preparing your finances. A pre-approval letter is good, but full underwriting approval is better. A pre-approval letter is a preliminary check based on your credit score, so it’s not the final say. Whereas, an underwriting approval in real estate means that the process of reviewing a loan application to determine the amount of risk has been completed and is satisfactory. The underwriter will examine your financial standing, along with the property’s value, to assess the deal’s risk. Having a full underwriting approval ready with only an appraisal needed makes it a quick and attractive deal for sellers since closing will be brief.
2. Be Aggressive with Your Offer in a Fast-Moving Real Estate Market
There’s no time to lose when the market moves quickly. If you want to get that house, you’ll need to show the seller you’re serious by bidding over the asking price. Remember, the asking price is only the sellers’ aspiration and may not be a reality of the market.
According to the Austin Board of REALTORS®’s January 2021 report, Austin home sales increased 23% to over 2,500 sales. The median price rose to $365,000, too. This is an increase of 16% compared to January 2020. Homes spent 33 days less on the market for an average of 33 days.
A cash offer is another tactic if you are unable to go above a specific purchase price. A cash offer typically means fewer contingencies with appraisals, inspections, and continued employment. Sellers like cash offers since they also speed up the selling process.
3. Don’t Overpay
The market is fast and competitive right now, but don’t get caught up in the drama of it all and pay too much for a house. Avoid getting caught up in the bidding wars and spend more than what the property is worth. The Great Recession is a painful reminder of the dangers of overpaying for a property.
A great tactic to avoid overpaying is looking at houses 10% to 15% below your budget. This allows extra cushioning so you can overbid while still not putting a strain on your finances.
If you need help competing in this fast-moving real estate market, contact us today! We’d be happy to start and guide you through your home buying journey. Call (208) 957-0870 or email Info@BoiseTurnkey.com.
