Home-buying activity has certainly been hot over the past few years, in spite of being in the middle of a pandemic. It will likely just get hotter as the spring buying season approaches.

Even as home prices and mortgage rates steadily rise buyers are not sitting out.

In this video we are going to share buying strategies you can use in a competitive market.

The first thing you should know is that you are entering a seller’s market. This means you’re not likely to cut a deal or get discounts—sometimes even if the home needs major repairs. That’s because supply is severely lagging demand.

It’s crucial to sharpen your home-buying tools if you want to compete successfully. Here are the top buying strategies.

NUMBER ONE: GET A MORTGAGE PRE-APPROVAL

While there are various methods sellers can use to snag a home in today’s rapid market, the one resounding rule all experts agreed on is to get a mortgage preapproval before you begin house hunting.

A pre-approval shows sellers a lender has verified your finances and creditworthiness and you’re ready to move.

NUMBER TWO: LOOK FOR HOMES UNDER YOUR BUDGET

Tales of multiple—sometimes dozens— of bidders —on one home are not unusual. This is real life in housing markets across the U.S. For buyers, that means you probably shouldn’t look for homes at the top of your budget, as you can count on someone else outbidding you. Just be sure this is true for your area.

If you’re serious about buying a home now, a good strategy is to search for homes below your spending limit. This way you have room to bid up without dipping into savings or going outside of your target price point.

NUMBER THREE: GIVE YOURSELF EXTRA TIME

It’s not uncommon for first-time homebuyers to borrow money to make a down payment. However, this should be factored into your timeline. Talk to your lender about any funds you expect to receive so they can walk you through the process. For example, if

someone is giving you money for the down payment, they will have to write a gift letter explaining that you don’t have to repay the money.

NUMBER FOUR: GET THE BEST REAL ESTATE AGENT POSSIBLE

An excellent real estate agent is every buyer’s secret weapon. They’re not only great negotiators and have a solid understanding of the neighborhood you’re interested in, but they also have terrific connections, which will benefit you.

NUMBER FIVE: EXPAND YOUR SEARCH

The most sought-after neighborhoods come with the highest price tags. If you have your heart set on owning a home and living in a specific but out-of-budget neighborhood, you might have to choose between them. For those who opt for homeownership over a coveted ZIP code, that means looking in other areas.

Start by identifying what you like about your dream neighborhood. Are there local restaurants and businesses nearby? Are there green spaces? Is it near public transportation? Whatever features you value, try to find them in areas you might not have explored before.

Finding a home in an extreme market can be overwhelming, but when you put together a talented team of a professional real estate agent, combined with a top-notch mortgage lender, you will make it much easier to accomplish your goal! Thanks for watching and be sure to let me know how we can help you!