March 2, 2021
How to Compete in the 2021 Real Estate Market
In one of the most competitive real estate markets our country has seen in years, being a prepared buyer is essential to winning the real estate market in 2021. Low mortgage rates have become extremely attractive to buyers looking to invest in the real estate landscape, yet with too few homes on the market, buyers are vying for available properties. To prosper in the competitive environment there are a few essential steps that can help buyers succeed in securing their desired home.
1. Be a prepared borrower
Planning and securing your financials ahead of time can assist in making the home purchasing process smoother and more efficient. It is important to get a pre-approval letter when searching for a home as it is one less step you will have to complete once you have found the property you wish to purchase. Additionally, beginning this process early and providing as much information as possible will ensure that you secure your investment. This is essential due to the highly competitive environment; it is essentially a race to see who can complete the required financial documentation first.
Another important facet to success in the 2021 real estate market is having an experienced realtor. Having a real estate agent who is well versed in a competitive market will greatly increase your success in securing your desired home. With so few homes on the market, a talented agent will help you find a property and implement a strategy to win the property over competing buyers.
2. Know what you want
You may have a general idea of the type of property you are searching for, yet it can be extremely beneficial to be specific throughout this process. Creating a list that outlines your ideal attributes and top priorities can assist you and your real estate agent. Additionally, it is important to look at the elements of a property that are cosmetic and permanent. Cosmetic changes can be altered with ease, yet permanent factors such as location, noise levels, and the floor plan are everlasting.
3. Be attentive to the market
Ensure that you are actively looking at the market or have an agent that will assist you in this process. Homes that pop-up in great locations, excellent school districts, and possess other attractive attributes will sell quickly. Especially due to the current competitive nature of the environment these desired homes will have many interested buyers. Once you have found a property that you are interested in purchasing it is extremely helpful to gather as much information as possible about the home so that you can contact the agent and place an offer.
4. Make a competitive offer
Making a strong offer from the start can be an excellent move in securing your desired property.
Your real estate agent should assist you in determining a solid offer and thus creating a strategy based upon the current market, the competition, and additional factors that may influence your offer.
5. Leverage the terms and conditions
Having your agent navigating you through the terms of the offer can be extremely beneficial to make your offer more attractive to sellers. On the flip side, these terms may expose some factors that are deal-breakers. Leveraging terms and conditions can be a useful tool in securing a property. Whether this is through the closing date, appliances, or earnest money deposit it can be used to cultivate a stronger offer that will garner the attention of sellers.
Overall, staying competitive and being well prepared is what will make buyers best equipped to tackle the 2021 real estate market. Additionally, having a real estate agent who knows these challenges well and seeks to help their clients develop a strategy is imperative.