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Writer's pictureChristine Elias

Best Practices for Buying and Selling in a Competitive Real Estate Market



a front porch with a swing and white wicker chair | urbandogrealestate.com

As we approach the end of the year, it’s anyone’s guess what happens to the real estate market. In a competitive real estate market, your home is worth more than ever, but competition will be high when it comes to buying a new home. Should you buy before you sell or sell before you buy? With the right strategy, you can reap the benefits of sky-high prices and also find a home that’s a better fit for you and your family. 


To ensure that you’re prepared for anything, in today’s blog post, let’s discuss four best practices for buying and selling in a competitive real estate market. 


1. Look for your new home first.


If you live in a hot market (like Central Florida!), you may experience high demand and competition with a lot of motivated buyers. Don’t put yourself in a position where you have to make a rushed decision because your current home sells faster than expected. If you don’t see anything available that you like, it may be a sign to wait to sell.


You might be tempted to put an offer down that’s contingent on the sale of your current home. However, to be as competitive as possible, it’s best to include the least amount of contingencies as possible. 


2. Make a strong contingent offer. 


There are a lot of ways to make your offer stand out to sellers. First, ensure that your offer is higher than the listed price. Offer to pay for any needed repairs too. You can even waive the inspection and appraisal. Listen to your agent’s guidance and come up with a plan that allows for your strongest offer while also keeping the sale of your current home in mind.


3. If you sell first, work out a deal with your buyer.


In a competitive market, buyers often offer incentives to make their offer more appealing. For instance, they may be open to a flexible move-in date based on your plans. You can ask for extra time to ensure that you find a home without losing the opportunity to sell your current home at the right time. Note that it typically takes 30 to 45 days for a mortgage loan to close.


Another option is a rent-back agreement with your homebuyers. With this agreement, the buyer purchases your home and then you rent it back from them for an agreed upon period of time. That way, you can stay in your house as you finalize your move.


4. Turn your primary home into an investment property.


Let’s be honest: A competitive market is not always the best time to sell. If your finances allow and you can buy a house without selling first, you may want to consider renting your current home. With more buyers than sellers, it’s possible that you’ll be able to rent your home for more than your monthly mortgage payment. However, if you use a property management company, remember that they’ll take a portion of your rent. Plus, if major repairs or problems arise, you’ll be stuck footing the bill. 


Not sure of the best choice for you? Talk to a real estate agent for guidance in a competitive real estate market!



Let The Urban Dog Group help you with your real estate needs. Contact Christine Elias at caerealestate@gmail.com.

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