3 Tips to Land Your Dream Home in a Hot Market

Everyone would love to secure a dream home. But what happens if you're facing a hot market? A hot market is great for sellers, but it creates fierce competition for buyers that leads to bidding wars. Many people vying for one property can make securing your dream home very difficult.

Here are three strategies that you can implement to dominate a hot market and get the home of your dreams. 

1. Pay Seller's Closing Costs

If you're competing in a hot market, then consider paying the seller's closing costs. Closing costs are generally paid based on the terms of the purchase contract. While buyers usually pay for most of the closing costs, there are instances when sellers may have fees too.

By offering to pay these costs, buyers won't just make things easier for the seller, but this can also give buyers a leg up when it comes to landing their dream homes. 

2. Waive Contingencies

Contingencies are clauses that enable prospective buyers to walk away and to get their earnest money back in the event these contingencies aren't met. 

Common types of contingencies include:

  • Inspection contingencies

  • Mortgage contingencies

  • Appraisal contingencies

These contingencies are designed to protect the interests of buyers. But, this can become a headache for sellers who want to get their property off of their hands as quickly as possible. 

If you're trying to secure your dream home in a hot market, waiving contingencies can be a great way to get the attention of the seller. This is because eliminating contingencies doesn't just shorten the buying process, it makes the seller more confident in your agreement to purchase. 

If you've found your dream home, this can be an excellent option if you want to minimize competition. 

3. Pay Low Appraisal Difference

No one likes a low appraisal value, but it can happen in any type of market. Low appraisals can occur due to situations such as artificially inflated prices, a declining market value, incorrect evaluation from the underwriter, and even an inexperienced appraiser. 

If you're dealing with a low appraisal offer, consider paying the low appraisal difference in cash to make up the difference between the appraisal value and sales price. 

This extra mile instills confidence in the seller that you can purchase the home and can also give you leverage when you're purchasing a home in a hot market. 

Buying your dream home is an exciting experience, but buying a home when the market is hot can be discouraging. While competition is certainly fiercer during this time, landing the home of your dreams is not impossible. 

Buyers need to be proactive and to make their offers more attractive to sellers in order to get ahead of the competition. The good news is that there are various ways to achieve this. Consider paying the seller's closing cost or waiving contingencies. Buyers can even think about paying the appraisal difference in the event it's lower than the sales price. 

Remember that when buying a home in a hot market, buyers need to find ways to stand out and to make the process simple for sellers. This is the best way to secure your dream home in a hot market.

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