Top Ten Signs You’re Dealing With a Competitive Market
It is definitely no easy feat to land a home in a competitive market. But, if you’re persistent, you’ll eventually get what you want. Prepare yourself for a fight, so to speak. Take time to relax now, because the road ahead is long and paved with Legos… Er, fellow potential homeowners who share your same tastes. But, that’s okay! You’re up for a challenge if it means owning real estate in your dream neighborhood.
Here are ten signs that show you’re in for some competition.
1. Show me the money
When it comes to competitive neighborhoods, a lot of the time sellers will accept cash offers. It is typical that those who shell out the green will end up getting their desired home, but that is not always the case. If your offer is good, you may still win even if you can’t pay up front.
2. Battle of the bids
If the price and location are right, buyers will often engage in bidding wars. Each person will bid just a little bit more than the last, in attempt to get the contract. Sometimes, a few prospective buyers will battle back and forth with each other if they get their hearts set on the home in question.
3. All the rage
Any time a city becomes popular, the cost of housing will naturally rise. With jobs and commerce flowing, it is only reasonable to expect the housing market to boom. Anywhere you see a great number of highly sought-after establishments, such as gyms and coffee shops, you know you have stumbled upon a geographical gem.
4. Escalation clause
It may sound strange, but these clauses give your permission to raise your bid up to acertain amount, in effort to keep from being beat out. It makes things a bit harder on the competition, but much more rewarding for you if you set the bar high enough.
5. Extra , extra!
You can do more than simply placing a bid on a home. If you really want it bad enough, you can negotiate to work within the seller’s time frame or even craft a letter to the owner, illustrating all of the many reasons why you deserve their home. Doing these little extra things can give you a leg up on the competition.
6. Above and beyond
Occasionally, a property will be simply so perfect that even the owner doesn’t do it justice in the listing price. Well, at least, that’s how some buyers feel when they find their dream home. You can tell that the market is pretty cutthroat when offers go above the asking price.
7.Everybody wants it
If you are told that there are multiple offers on a place, or if you noticethat the open house is full, that is an easy indicator of the home’s popularity and your reduced percentage of having the winning offer.
8. Like a thief in the night
In a booming housing market, you will notice a shortage of listings available. The reason for this is not that homes aren’t being sold, it’s that they are selling so quickly that they are hard to come by. When the home buying process becomes more like a race, you know the neighborhood is worth the effort.
9. The wave
One common trend is, whenever one neighborhood becomes sought after, the surrounding areas will follow suit. Once run-down areas will begin getting makeovers and provide a whole, new set of options for buyers.
If you notice a cutoff date for bidding, then it is clear that there is no desperation on behalf of the sellers. They know they have prime real estate and that it will sell quickly.