How to Buy a Home in a Tight Real Estate Market or Highly Desirable Area

Buying a home is both an exciting and challenging decision. Purchasing a home in a tight real estate market or in a highly desirable area adds another distinct challenge in itself. It is not impossible; but it will be challenging. Here are some tips that may make the process easier.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Real estate agent or broker.
• Down payment for the mortgage and pre-mortgage approval.
• Or, proof of funds if you plan to purchase the home in cash.

1. Be 100% prepared. Be prepared mentally and financially for the process. Have your down payment ready, as well as your mortgage financing ready. Clear up any outstanding bills and debts. Be sure that your credit report is accurate and be aware of your credit score as it directly relates to your financing allowance and mortgage interest rates.

2. Know what you are looking for, or at least have a strong idea of the home you are looking to purchase. Think about the size and type of home and the neighborhood where you are looking to purchase. Also, be clear of what you are prepared to live with, or without, in regards to your home purchase. If you are unsure about any of this, a real estate agent or broker should be able to help you.

3. Find a reputable broker or agent that knows your target area well, has listings in your target area or can help you find listings there. Be sure to choose an agent that will fight for you and has some experience in the real estate business. Tell them your needs, wants, and desires but most importantly listen to their expert advice.

4. Ask your agent about the range of home options, the styles and sizes of homes, and the range of costs for homes in your target area. Also ask about the latest sales in your target area.
   
   Be realistic. If your target area has few homes of your style and size preference and in your price range, consider looking at another area.

5. Be proactive. In a tight market, or a highly desirable area, homes are quick to sell and usually at the asking price, sometimes above it. Ask people in that area or those familiar with the area for tips or any information on homes for sale in your target area. Scour the Internet, real estate web sites, and local magazines and newspapers for listings.
   
   If you see or hear about a home that interests you, take that information to your agent and look into it. Your agent may have contacts in the real estate business or in your target area, but it always helps if you join in the process.

6. Be sure to attend open houses of homes in your target area. Consider going to see homes that may not appear at first glance to be an option for you. Schedule private viewings for homes with your agent as well.

7. Be prepared to wait it out for the home that you want or to settle for a home that doesn't match your home wish list completely.
   
   But if you find a home that matches 80%-90% of your wish list, consider making an offer ASAP! Listen to your agent in regards to making a good offer. If it is a sellers market, you will probably want to make an offer as close to the listing price as possibly, and possibly above it if it is a highly desirable home and area.
   
   Good luck.

Tips & Warnings

• Be patient. Purchasing a home in a tight market or in a highly sought after area, will be arduous and time consuming. It will not happen overnight.
• Be discerning. Do not settle for the first home that becomes available; but do not drag your feet on a desirable home either.
• Be prepared to make multiple offers and counteroffers.
• Do not become attached to a home until you have officially closed on the home. It is not your home until the home has passed the inspection and you and the seller are in escrow.