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5 Tips to Buy a Home in a Competitive Market

Posted by Jeff Sallan on Sunday, March 25th, 2018 at 3:24pm.

The real estate market in Reno-Sparks isn't slowing down. In fact, with the Spring and Summer buying seasons just around the corner, there will likely be more homes on the market as well as more buyers looking for new homes. Homes in the lower price points are getting offers very quickly, frustrating buyers in that market. With all the competition for homes in Northern Nevada, as a buyer, you need to make sure that you are as competitive as possible. Follow these tips to make the most competitive offer possible.

1. Get Pre-Approved. Work with your lender to see the amount you qualify for, then go through the approval process. Pre-approval is different than pre-qualification, and requires some paperwork and a credit check. But, because you've already been pre-approved, your offer is stronger since your lender has already approved your loan to a certain amount. Pre-approved buyers also look more serious about purchasing a home than home buyers who have not been pre-approved. 

2. Make a Competitive Offer. If you have great plans of low-balling a seller, especially if the home hasn't been on the market that long, there's a chance the seller won't even respond. Work closely with your agent to submit a fair, competitive offer. 

3. Submit Your Best Down Payment. Your down payment should be as large as you can reasonably manage. Remember that in addition to your mortgage, you will have property insurance and property taxes. Your lender should be able to estimate those amounts to include in your house payment. Sellers may see larger down payments as stronger offers because they may think the mortgage process may be smoother than with a buyer with a small down payment. 

4. Limit (or Avoid) Contingencies. If you have a contingency that your current home must sell, your offer may not be as strong as a similar offer where the buyers are willing to close in 30 days. Work with your agent in submitting your offer to limit contingencies to only those necessary. 

5. Be Flexible. You don't know why the seller is selling. They may need to stay in their home through the end of the school year. Or they might need to sell and move as soon as possible. If you have some flexibility in your closing schedule, your agent can include that in your offer. 

If you are planning to purchase a home in Northern Nevada, whether for the first or 15th time, it will benefit you to be as competitive as possible. Working with a Realtor who is experienced working in the local market will be able to assist you in finding a home that meets your lifestyle and budget. 

Curious about the Reno-Sparks real estate market? Call us at 775-453-4568 or contact us here. We'd be honored to be of service to you. 

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