In real estate, a “hot market” refers to a market with lower inventory and higher demand. When the market is hot, there is more competition for property and this can make buying a home more difficult. If you’re trying to buy a home, here are some tips for how to navigate a hot market.
Start With a Broad Search
Keep an open mind in the beginning. While you might have a specific dream neighborhood in mind, don’t rule out other options. Browsing online real estate portals, local real estate websites and even exploring potential neighborhoods in person can help you get a better idea of what’s available. Keep your search for specific properties broad as well. Broadening your perspective can help you in a hot market.
Hire a Real Estate Agent
A buyer’s agent is essential in a hot real estate market. A good real estate agent can help you find listings as soon as they hit the market or even before. They can also use their expert knowledge to make you stand out against other buyers. Try contacting multiple options and maybe ask for personal recommendations from friends, family or colleagues to find a good fit.
Prepare Your Financing
Do your mortgage shopping early so that your finances are prepared for a quick decision when the time comes. Compare lenders to find the best rates. You may also want to consider getting preapproval from more than one lender as well. Preapproval makes a vast difference in whether an offer is considered because it shows the seller that you’re financially responsible and serious about the decision. Sometimes, sellers may even require preapproval to tour a home in person.
Expect Compromises
Unfortunately, you can’t always get your dream home in a hot market. Instead of waiting for the perfect property and potentially missing out on other opportunities, keep a tier list of priorities and consider looking for second-choice homes. If there aren’t any homes available that meet all of your criteria, consider which things you can do without or compromise on.
Be Patient
Navigating a hot real estate market can be frustrating. It's hard to find what you want and you may lose out on multiple great homes to other buyers even when you find them. The home buying process can last several months and feel as though it’s full of failures—however, it’s crucial to be patient instead of giving up on your plans or paying too much. Offering too much to “settle” on a house can leave you with serious buyer’s remorse and an empty wallet.
Keeping these tips in mind will help you find a great home, even in the hottest housing market. While it can be competitive and difficult, the more knowledge and preparation you have, the easier the process will be.
About the Author
Joseph Nuzzolo
Joe was Born and raised in New York and came to LA when he was 25 years old. He started in the fine arts industry with tremendous success. As a Sales Expert, he has closed over 11,000 art deals. It was his love of working with fine art, his creative mindset – and a succession of personal real estate investment deals – that led him into the world of real estate. He was the top agent for 3 Leaf Realty before opening his own firm.
In 2017 Joe decided to branch out on his own and launch his long planned and awaited, Thompson Team Real Estate based in Torrance. Where he and his team of hand picked agents cater to a discerning clientele. Through his 30 years of sales experience, Joe has built a strong and formidable reputation with clients, industry professionals and peers. He utilizes the latest technologies, market research and business strategies to exceed his client’s expectations. More importantly, he listens and finds solutions that are tailored to each client’s specific needs.