Buying A Knoxville Home In A Seller’s Market: Don’t Make These Rookie Mistakes
It’s that time of year when many buyers think about buying a home. The weather is warm and the real estate market is hot.
But, before you jump into buying a Knoxville home, it’s important that you enter the market knowing its current climate. Here’s what you need to know about buying a Knoxville home in a seller’s market, so you don’t make these rookie mistakes.
Failing To Get Pre-Approved
First and foremost, when you’re in a market when you are competing with other buyers, you need to make yourself stand out from the rest of the competition. One of the easiest ways to do this is to ensure that you’re pre-approved before you start your home search.
A pre-approval is important for many reasons when you buy a Knoxville home in a seller’s market. First, it shows you what you can afford. Knowing this is extremely important when you think about buying a home. Price is the single most important factor when you buy a home. Without proper knowledge of this, you’re basically starting your home search blind.
A pre-approval letter also shows a seller that you’re a strong buyer. When you submit your offer with a recent pre-approval letter from a reputable lender, it shows the seller that you’ve taken the time to get pre-approved. When considering offers, sellers want to know that they will get to the closing table on time and without major delays. A pre-approval letter can help give the seller confidence that you’re a solid buyer.
Not Knowing What You Want
Before you embark on your home search in a competitive market, it important to have a clear picture of what you’re looking for. Without a clear understanding of what you need in a home and want you want in a home, you can spend a lot of chasing your tail and could potentially miss out on a great house.
A housing need is something that is essential in a house. For example, if you have kids, you may need a certain number of bedrooms or bathrooms. Things like the number of bedrooms and bathrooms, certain square footage, a bonus room, or home office are all things that are typical housing needs.
In contrast, a housing want is something you’d like to have, but it’s not essential. For example, you may prefer an updated kitchen and master bathroom. Housing wants are the little extras to a home that are the icing on the cake. Things like neutral paint throughout, a great patio, or lots of storage space are all typical housing wants.
Particularly in a competitive market, it’s important to know what you want. If you go into your home search half prepared, you may end up missing out on a great house by wasting time looking at too many different homes.
Waiting To Make A Move
When you buy a Knoxville home in a seller’s market, time is of the essence. Waiting days or even hours can cost you to miss out on that home that you’ve fallen in love with. Whether it’s writing an offer or just going to go see a house, when a great home hits the market, you don’t have the time to waste.
When you start your Knoxville home search, be sure that you give yourself the time to dedicate to your home search. You may be spending your evenings after work, your weekends, and your lunch breaks viewing homes. While it can take up a lot of time when you’re searching for homes, it will be worth it when you find the right one.
When you do finally find the right home, don’t wait too long to make a move. There are many times where buyers want to sleep on it before making an offer, but just remember days and hours matter in a seller’s market. Particularly, when it is a new home that has hit the market.
Writing A Lowball Offer
Finally, when you’re buying a Knoxville home in a seller’s market, there’s no room for a lowball offer. In a seller’s market, sellers tend to hold the winning hand. There are too many buyers and simply not enough houses. This is why there is no room for lowball offers in a seller’s market.
There are many times where buyers will want to test the waters when they write an offer. They find a home they like and want to see what kind of deal they may be able to get. Instead of writing a strong offer, they go in a bit below seeing if the seller is willing to give a little on the price. Unfortunately, when there are other buyers who are not willing to mess around, lowball offers often get cast aside.
Before entering the market to buy your first Knoxville home, it’s important that you understand the market. There is no time to waste in a seller’s market. So, when you do find a home that you want to make an offer on, be sure that you go in strong from the start.
Buying your first Knoxville home is an exciting and overwhelming experience. If you’re like most first-time buyers, you may not be sure where to start. If there is anything we can do to help you with your home search, please do not hesitate to contact us. We’ve helped countless homeowners buy their first home and we’d love to do the same for you. Rick can be reached at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.