Navigating the Real Estate Market: How to Find Your Dream Home in a Competitive Market

Finding your dream home may seem daunting, especially in this hyper-competitive market. The good news is that there are some steps you can take to make the process as easy as possible.

Housing prices are rising throughout America, and demand is only getting stronger. A recent study found that the median sale price in the first quarter of 2024 jumped 28% from the first quarter of 2020. Buyers must come prepared to get a reasonable price and not let their dream home slip through their fingers.

Let's take a look at some essential tips you should know to navigate the real estate market below successfully:

1. Understand Your Priorities

First things first, before you even begin house hunting, there are a couple of things you need to confirm. Things you need to consider include:

• Location - This is more than just the state or suburb you want to live in; you have probably already decided. It would help to consider how close the property is to work, school, public transport, and other amenities. Would you prefer to live in an urban environment or somewhere more suburban?

• Size - How big does your home need to be? If you are growing your family, you'll likely need a bigger home. 

• Budget - Your budget will be based on your financial situation and will greatly determine the type of home you can purchase. 

• Needs vs. Wants - There is a difference between needing and wanting something. There will likely be some deal-breakers, so make sure you know what they are.

2. Get Pre-Approval 

One of the keys to successfully purchasing your dream home is the ability to move fast. Organizing a pre-approval for a mortgage will show sellers that you are a serious buyer and may make your offer seem more attractive. For pre-approval, you'll need to organize things like:

• Credit Score - Your credit score impacts the mortgage rate you'll be approved for, so it's essential to be in top shape to get pre-approval.

• Financial Documents - You must arrange several different documents for pre-approval. Documents like pay stubs, bank statements, tax returns, and proof of assets may all be required.

• Mortgage Lender - You'll need to choose which lender to get pre-approved. Also, remember that there are different types of mortgages, like qualified mortgages, so you'll need to understand the right type for you.

3. Check Listings (or Find a Knowledgeable Real Estate Agent)

You now have all your requirements sorted, so you can check listings and filter them down accordingly. No matter where you live in America, from Pennsylvania to California, there will be places where you can check listings. So, anywhere from Venice Beach to Main Line new listings, you'll be spoilt for choice.

If you've been checking new listings for a while and need help finding something that works out for you, you can enlist the assistance of a local real estate agent. They will have all the local knowledge and provide invaluable insight into the market. They'll be able to help you find homes to look at and guide you through the entire buying process.

Some of the things to consider when finding a real estate agent include:

• Read reviews and ask for recommendations from friends and family.
• Interview multiple real estate agents to find the one that most understands your needs.
• Check that the real estate is appropriately licensed and has a good reputation in the area you want to purchase.

4. Make Your Offer

Once you've completed the initial inspections and found a place you love, either through looking at new listings yourself or through a real estate agency, the most important step is to put in a competitive offer.

There are a couple of strategies you should consider to improve your chances of acceptance:

• Competitive Price - The most obvious strategy is to offer the seller a competitive price for their property. Remember, in this competitive market, you may need to offer more than the asking price.
• Limit Contingencies - While protecting yourself, limiting some contingencies may mean the seller views your offer more favorably.
• Personal Touch - The seller will likely receive several offers for their property. One easy way you can stand out is by explaining to the seller why you love the house.

5. Be Aware of the Closing Process

If your offer is accepted, it isn't time to celebrate just yet; there are still some areas to take care of before everything is finalized. The steps in the closing process include:

• Finalize Your Mortgage - You must have everything in order so you're able to borrow money for the purchase.

• Home Appraisal - Your chosen lender will order an appraisal to detail the home's value and ensure it corresponds to the loan amount.

• Title Search and Insurance - An assigned title company must verify that the property can be sold (i.e., no debts attached) and that the seller has a right to transfer the ownership.

In Summary

Finding your dream home can be a long and tedious journey. If you don't want it to end in heartbreak, it is important to properly prepare, follow a buying strategy, and keep persevering. If you can follow the tips in this blog, you are improving your chances of successfully securing your dream home!