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The Market Is On Fire!

Home Buying Guide in a Competitive Market


Competition in this spring’s housing market is hotter than ever, all courtesy of high demand and record low supply. Selling a home has likely never been easier, and while that may sound like great news for real estate agents, there is a little problem: They are desperate to find listings.

Buying a home is an important goal for millions of people. So, what’s stopping you from the exciting homeownership journey. It's up to you to take control of your home-buying ambitions, and at Eighty8, we're here to assist you with this homebuyer's guide.

Today’s housing market is undeniably set on fire with no signs of cooling down. With more buyers than homes for sale, we’re looking at a very competitive home-buying season. At the Eighty8 Group, we have laid out key strategies that will give you not just an edge over other buyers but also make you the champion of this season’s competitive housing market.

1. Do Your Pre-Approval Homework

Pre-approval gives you the ability to make informed choices regarding your home-buying budget. Based on your salary, down payment, and credit score, you'll know how much you might be able to borrow, how much you might be able to spend, and how much your monthly payment might be.

Requirements for Pre-approval

  • Proof of Income

  • Proof of Assets

  • Good Credit

  • Employment Verification

  • Other Documentation ( i.e drivers license, social security number)

You'll need to have your W-2s, paystubs, bank statements, and some kind of identification, such as a driver's license, to get pre-approved. The accurate documentation required will vary depending on your personal financial condition and the lender you're working with. If you cannot obtain pre-approval, the procedure will assist you in determining what you need to do to apply. To boost your credit score, you can need to raise your down payment or function.

2. NEEDS versus WANTS

Create a list of your wants and needs before searching for a house. "Needs" are features that are non-negotiable in your next home. "Wants" are features that you would like to have but can compromise on.

Which aspects of the house or neighborhood are essential, and which are a deal-breaker? Great schools nearby and a low crime rate are significant, but some house features are purely decorative and can be modified. Determining what can be compromised will allow you to move quickly and make a bid. The faster you can decide, the better chance you'll have to purchase a home in a hot market.

3. Secure a realtor, your home-buying confidante.

It is important to find a realtor who is familiar with your family's distinct personality and needs. Realtors understand the current demand and are aware of what is affordable, what is on the horizon, and what will sell quickly. Realtors keep up with new listings so that they can display them to their customers. An open house, private tour, or digital tour of the home's interior and exterior are all examples of showings. Photos, video, and even 3D images can be used in digital tours.

Read feedback and seek advice from family, colleagues, or your Personal Loan Consultant. Since your realtor is so important to the house-hunting process, it's well worth your time to look into their qualifications and get personal recommendations.

(CTA) Looking for a top-caliber realtor? Give one of our Eighty8 real estate agents a call.

4. Drop the bomb and make a strong offer.

When you fall in love with a home and discover that many offers are on the table, there are a few things you can do to stand out from the crowd and maximize your odds of winning the bidding war.

Strategies include higher prices, higher down payments, writing a "love letter," which informs your salesman what the vacation home is, the option of the closing date for your salesman, and the limit on contingencies. Prior to closing the deal, contingencies shall be complied with.

Common Contract Contingencies:

  • Home inspection,

  • Appraisal,

  • Approval of financing

  • Insurance

  • Sale of the buyer's home.

Make sure you put the best deal you can on the table, regardless of your approach. Sellers would not accept competitive market offers, which they do not regard as serious, especially in the case of many others.

5. Hang on tight and stay focused!

And while you might go through this process a handful of times in a competitive market, this is an exciting and positive journey. You may face some challenges, but everyone involved in the transaction is an expert in their own right, and they will assist you in reaching the finish line. In a hot market, you can "lose" a few homes you like to other buyers. That is a natural part of the process in such a competitive market.

If your first bid is rejected, try not to be disappointed. Discuss with your realtor and mortgage specialist what you should do better next time and how you can improve your bid. Consider changing your list of wants and needs to broaden your housing options.

By following these tips, you’ll be well equipped to pounce on the perfect home with an edge over other buyers. Be patient and continue to make offers until you're able to buy a home that made you fall in love.

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Eighty8 Group
2115 Main St.
Santa Monica, CA 90405

DRE# 01965361

Compass is a licensed real estate broker (01991628) in the State of California and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only. Information is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdraw without notice. No statement is made as to accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer. This is not intended to solicit property already listed.