A hot real estate market is something we hear a lot about these days. The news is always talking about which markets are the hottest, but what does it really mean for sellers and buyers?
In a hot market, sellers are able to sell their homes fast, and often for more money. Housing inventory is low which means there are simply more buyers for homes than sellers. If a home is priced right, it may sell within days, and with multiple offers. The demand being higher than the supply also drives up the prices of homes for sale. Most often the hot market applies more to mid to low priced homes, as higher-end homes tend to have a smaller buyer pool resulting in more time on the market.
If you would like to sell your home, a hot real estate market is a perfect time! For buyers, it means a lot more time and effort to find a home, and perhaps an increase in the price buyers had planned on paying. Buyers may become frustrated after finding their dream home, only to end up in multiple offers, and not having their offer accepted.
What can buyers do in a hot real estate market to get the home they want?
- Get pre-approved – Sellers will be comparing the offers they receive and if they see your financing is solid through a pre-approval, it will help make it stand out.
- Hire a Realtor – The seller pays the Realtor, making it a free tool to have in your pocket. Find someone you can trust to work for you.
- Wants vs. Needs – In a hot market, it may not be possible to get absolutely everything you are looking for in a home. Make a list of what you really need, and another with what you would like. By defining your wants and needs it will help narrow down your search, and you won’t waste time looking for things you really don’t have to have.
- Don’t procrastinate – Now is not the time to take your time in setting up showing appointments. If you see a home come on the market, have your Realtor book a showing right away. Keep an eye on coming soon listings as well, so you will be ready to look as soon as the home is active.
Although a hot real estate market is great for sellers, buyers shouldn’t be intimidated. Just be sure to prepare yourself for the potential competition and be understanding and patient with the process in this market.
To learn more about today’s market and to see if now is the right time to buy or sell, contact your RE/MAX Results agent.