I get this question so often - how can a first time home buyer compete in a hot real estate market?The good news for buyers is that we appear to entering a more stable and balanced phase of the real
Buying A Home In A Competitive Market
I get this question so often - how can a first time home buyer compete in a hot real estate market?
The good news for buyers is that we appear to entering a more stable and balanced phase of the real estate market in Colorado, and elsewhere across the country. However, this does not mean that competition for the home you really want won't be fierce!
Here are a few tips:
You will have to compromise. Your first home isn’t usually your dream home. It’s a step to getting to your dream home.
Work with a professional real estate broker to help you find and negotiate for your new home. They have done it dozens or hundreds of times – you haven’t. Of course, I'd prefer that you choose me as your Realtor, but if not me - PLEASE choose a competent real estate agent!
Look for the smaller house in the nicer neighborhood, and shy away from those homes that have recently been fully remodeled. Newly remodeled homes command big premiums from buyers who don’t look past the surface shine.
ADJACENT. You don’t have to be IN the super-hot neighborhood, because before too long, the homes adjacent to that hot neighborhood will also be hot.
Think fast. You don’t have the luxury of hemming and hawing. Early bird gets the worm. Go see a home you are interested in ASAP, or if you can’t, ask your agent to do a showing for you by video or Facetime.
Be careful with this one, but you may be able to beat out other offers by waiving the inspection. This is generally not recommended on single family homes, but often can be a reasonable option on newer-construction condos or townhomes, where an inspection is unlikely to turn up major issues. Only do this if you have a very well trusted agent. Like me, for example. I'll write a future post dealing with home inspections and the consideration that can be given to waiving them in the near future.
Don’t allow the listing agent to make an offer for you. Their duty is to the seller, not to you. Have your own representation.
Are you a home buyer frustrated by the market? Call me! Michael Schaffer, Broker/Owner, Reason Real Estate 720-278-6802
Michael Schaffer – Broker-Owner Michael Schaffer is Reason Real Estate’s Broker-Owner, chief negotiator and dealmaker. Bringing two decades of business acumen and negotiating experience to t....
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