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Benjamin Gordon Cambridge Capital on Home Buying Strategies in a Competitive Market


— April 13, 2021

Hot houses will sell for a higher price. You may be looking for a home with a specific neighborhood in mind. The challenge can be that where you want a house is in an expensive locality.


Spring used to mark the start of the home buying season for many people. That lasted until the pandemic swept across the United States, and impacted most of the world. 2021 looks a bit different in many ways. The home buying experience looks different than it did before the pandemic, and it certainly looks different than it did during the height of the pandemic. Now, there are new ways to shop for, and purchase, residential homes. You don’t have to attend open houses where potential buyers and realtors gather and tour. Today, interested potential buyers can choose to see a house through either in-person visits, or virtual tours.

Along with these changes caused by the COVID-19 pandemic, homebuyers also have to deal with an increasingly competitive market. Below, you many find some info and tips to make your home buying journey less daunting. 

Benjamin Gordon Cambridge Capital: How to buy a house in a competitive market

Mortgage 

Real estate experts believe that securing your mortgage pre-approval prior to house hunting can be helpful to the house hunting process. This pre-approval means that you have already verified your creditworthiness and financials, which is something that most sellers normally need to know before authorizing a purchase. About two-thirds of first-time buyers apply for mortgage pre-approval. Maintaining this status shows the seller that you are serious about buying a house.

Budget

Sometimes, a home can attract dozens of bidders. As a buyer, you should not start by looking at a house that is near the top of your budget. Someone can quickly bid more and win the house. If you are genuinely interested in buying a home within your budget, you should focus on a property that is less than your maximum spending capacity. According to Benjamin Gordon, this tactic will give you more room to search for a great house without affecting your savings or forcing you to pay more than anticipated.

Real estate agent

It is best to have a reliable real estate agent when searching for the home of your dreams. They can help you with negotiations, understanding neighborhoods, networking, etc. Before you select a real estate agent, you should secure references and recommendations for reputable agents. You can see reviews for their services. Once you have shortlisted a few agents, you can ask them questions related to their experience, the number of properties they have sold, and so on. If you feel satisfied with their background, you can inquire a bit more about what they think of a particular neighborhood where you are looking for a house, the list of properties they may have in that locality, etc.

Keyring with small house on it sitting on top of purchase contract as man signs it; image by geralt, via Pixabay, no changes made.
Keyring with small house on it sitting on top of purchase contract as man signs it; image by geralt, via Pixabay, no changes made.

Benjamin Gordon Cambridge Capital says you should also understand their fees ahead of time. You should have complete clarity about the costs associated in order to avoid any miscommunications or upset later.

Search 

Hot houses will sell for a higher price. You may be looking for a home with a specific neighborhood in mind. The challenge can be that where you want a house is in an expensive locality. As a result, you need to make a call between two options – paying extra for a coveted location, or finding the right home, perhaps in a different location. If the focus is just on buying a nice home, you can expand your search to more zip codes.

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