How to stay competitive when shopping for a house in a hot market

When the number of interested homebuyers strains the available inventory, real estate professionals call that a seller’s market. The U.S. housing market continues to put sellers in the driver’s seat, and prospective buyers face stiff competition. Although growing families may not necessarily hold the best bargaining hand, it’s important to remember that you are not competing with sellers. It’s the other potential homebuyers you are negotiating against to secure your dream home.

The good news is that a seller’s market does not necessarily place you at a disadvantage. By preparing yourself before house shopping and learning a few key strategies, you can move to the front of the line. If you want to know how to stay competitive in today’s hot housing market, these strategies will help.

Conduct Thorough Financial Due Diligence

In all likelihood, you will need to secure a mortgage to purchase a home. This usually means saving a down payment as high as 20 percent or leveraging one of the lending programs that allows you to use a lower amount. Before applying for a mortgage, it’s crucial to check your credit score and improve that three-digit number if possible.

 

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