By most accounts, we are currently in a seller's market in Albuquerque. Home prices nationwide are expected to rise, and there are fewer homes on the market. This means that as a home buyer in Albuquerque, you need to up your game to get the right home.
Here are a few suggestions to keep in mind as you search for your dream home in Albuquerque.
When you find a home for sale in Albuquerque that might fit your needs and budget, you need to be decisive. It really can boil down to who gets to the home first when it comes to making an offer.
If you want to see a home that goes on the market, don’t wait until the weekend for a showing. Try to get a showing as soon as you can, or if that’s not possible, do a virtual showing.
You also need to work with an agent who is an expert in the Albuquerque real estate market and will work hard to help you get the right home.
Don't make your offer complicated for the seller. If you add contingencies to your offer, they may opt for a faster and easier deal.
Contingencies may offer you as a buyer more ways to back out of a deal, which may be appealing to you. But from the seller's point of view, this may make them just go with what they view as a more stable offer.
You can still protect yourself, even without contingencies. For example, you may want to get your loan completely underwritten. This means you go through the full loan process before you make an offer.
It Doesn't Need to Be Perfect
The right home doesn't have to be perfect right our of the gate. With inventory as low as it is, finding the "perfect" home may not be an option. But that's OK.
If you find a home that's right for you, you can make it perfect later. It's your home. You can do what you want with it.
Be Disciplined with Your Budget
If a bidding war breaks out over the home you want, be careful not to get carried away. Getting emotionally attached to a home can make you go beyond your budget.
Set a budget, and don’t let yourself go above it, no matter what the other offers may look like. Sure, offering too much may get you the house, but it’s going to create financial stress for you for years to come.
Offer More Earnest Money
Earnest money is something like a deposit and you provide it alongside your bid. It’s a way to show the seller you’re serious, but if the deal doesn’t go through you can get that money back.
Usually, you’ll see buyers offering around 1%, but during a hot market, think about offering more. It shows that you’re more invested in the deal and less likely to let it slip through your fingers.
If you have the option to pay with cash, that’s almost always going to win you favor. Cash offers take out the element of financing contingencies, and they make for a simpler transaction, which is beneficial for buyers. A cash buyer also tends to be more serious, and when you buy with cash you’re not beholden to the lender through the closing process.
Buying a home in a seller's market can be challenging, but you can find the right home if you're patient and work with the right agent. The Sandi Pressley Team has the experience to help you find the best home for your needs in this seller's market in Albuquerque.