When you’re house hunting in a competitive market, buying property isn’t easy. However, if you have a good degree of persistence and patience, you’ll eventually get the home you want. So buckle up, grab a coffee, and do a few breathing exercises. Here are six signs you’re in for a competitive ride.
1. Cash rules.
When sellers expect cash offers to roll in, that’s a huge indicator that you’re in a competitive market. If paying in cash isn’t possible for you, don’t worry. It’s definitely not the only negotiation tactic you can use.
2. Bidding wars are alive and well.
Competition is fierce when bidding wars are prominent. This happens when potential buyers try to outdo each other in terms of the highest/best offer. Bidding wars are extremely common in major cities.
3. It’s very expensive.
When homeowners begin to flock to a desirable place to live, that’s typically reflected in its housing market. How do you know when your region has reached its ultimate competitive peak? Coffee shops, trendy stores, and yoga studios are pretty good indicators.
4. Sell prices are way above asking prices.
If homes are selling for way more than their asking prices, that’s another sign of intense competition. In fact, these high selling prices are often the result of bidding wars.
5. There isn’t much to choose from.
In a competitive market, you might not be able to find many listings online. That’s because houses fly off the market almost instantly, and there’s just not that much to choose from. If you find yourself stressing over racing to view properties early, set up an alert on your phone to tell you when new listings appear.
6. Offer deadlines are imposed.
In order to create hustle and momentum, sellers sometimes impose deadlines. However, this only works in a competitive market where there will be enough bids to make a cutoff date worth it.