Buying a home is a big task, and it can become even more complicated when you have to navigate through the low supply and high demand of a hot market. Here are six tips to help you buy a Riverside home in a hot market.
Know what you want and need
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The first thing to do when preparing to buy Riverside real estate is to
make a list of what you need and want out of a property and the area. Decide which items are and aren’t negotiable to help narrow down your search. For example, if you have children, then you may want a home near a good school system. If you want to work from home, then you may need an extra room for a home office.
Although buying a home in a hot market can be difficult, you shouldn’t settle for a property that you wouldn’t normally buy. Keep your emotions in check and try not to get desperate by finding a property that only partially meets your needs. Doing so ensures you don’t make a decision you’ll regret later when you’re out of the pressure of a hot market.
Be financially prepared
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Buying a home in a hot market will cost more than if you buy at a different time, which is why you should take the time to be
financially prepared. Understand what your income allows you to pay monthly if you’re getting a mortgage, and think about interest rates. When deciding on a mortgage, try and find a local lender.
You should also start saving for a down payment. Aim for 20% of a home’s price since you won’t have to pay private mortgage insurance if you do. Save up for any work that needs to be done to the house you purchase, such as repairs, renovations, or furnishings. After you’ve bought your home, make sure to account for moving costs.
Get pre-approved
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Unless you’re making a cash offer on a home,
getting pre-approved for a mortgage is one of the most important steps to buying a home in a hot market. Sellers won’t take your offer seriously if you aren’t able to show you can follow through on it. Sellers in a hot market likely have multiple offers they’re considering, so make sure yours is on par with the others by getting pre-approved.
One way to make sure you’re getting the most out of your pre-approval and mortgage is to increase your credit score. If you have low credit, you’re more likely to be loaned less money at a higher interest rate. Check your score regularly to stay on track and to catch any possible errors in your credit report. If you’re interested in checking your credit score, you can do so weekly for free via Experian, TransUnion, or Equifax.
Work with a real estate agent
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A real estate agent is a valuable resource when buying a home in a hot market. They’ll know how to find Riverside real estate properties that align with your list of wants and needs and provide you with options that you wouldn’t have considered otherwise. They’ll also have information on new listings and can tell you about hidden ones. Their network of connections is valuable since they’ll have contacts to professionals you’ll likely need when closing an offer.
Real estate agents are experienced in negotiation and communication, and they’ll help you make the best offer while communicating with the seller or seller’s agent. When searching for an agent to work with, ask around for recommendations from friends and family and look on review sites online. Be prepared to interview a few candidates, and ask them questions to better understand their experience and communication style. If they seem compatible with your goals, work with them for an easier homebuying process.
Move quickly but carefully
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Timing is crucial in a hot market since a home you like may not be available when it’s convenient for you to view it. Keep your schedule open, and be ready to make an offer when you see a home since there may be another person equally as interested as you are. Your real estate agent will update you on the latest listings and communications between you and a seller.
Search for the latest listings online through local listings or nationwide websites. Use your personal network to your advantage by telling your family and friends you’re looking for a home to buy. Having extra sets of eyes can help you find a property in an area you weren’t searching in. Although you should keep your list of wants and needs in mind, decide quickly if a property meets your requirements, and if it does, then act as soon as possible.
Make a competitive offer
When you’ve found a home that you’re interested in, work with your real estate agent to make a
competitive offer. Offer at least the listed price, and be prepared to offer more. Consider making a large earnest money deposit, which is the money you submit with your offer. Having a local pre-approval letter and sending it to the seller can help your offer stand out.
Don’t ask for favors or contingencies that’ll take extra time to complete. For example, now isn’t the time to ask the seller to cover closing costs or to make home repairs. If the seller still needs to move out of the home, give them extra time to do so. It’s also a good idea to write a personal letter to appeal to the seller’s emotions.
Ready to search Riverside real estate?
With these six tips, you’re ready to buy a Riverside home in a hot market. When you start your home search, contact local agent
Diana Renee to help guide you through the process.
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