In an ideal market finding the perfect home shouldn’t be a stressful process, on the contrary that’s the fun part. Houston’s current market conditions are anything but fun, unless you're a seller. I understand firsthand how stressful a limited inventory market can be. You save up enough money for a down payment, you obtain or maintain a great credit score in order to be able to qualify, you search online and find the home that you know is perfect for you and then it’s gone, it was gone before you even signed the offer. That’s the stress of a multiple offer market.
Questions I hear from my buyers:
Should I increase my price range?
You don't have to increase your price range but I would definitely discuss different financing options available with your Realtor and lender. It's extremely important that you understand the market that you are looking into so you don't miss out on available options. There are many creative financing solutions that you can take advantage of in order to increase your competitiveness. Also, there are other terms of your offer which your Realtor can explain to you that can be modified in order to present a more appealing offer.
Is the Price Negotiable?
Your initial offer is very important. If you’re looking for a deal….you might want to wait for the market to settle down a little bit. Your Realtor should be educating you on market conditions, if you love the home make sure your offer is strong because chances are if you love it so does someone else. However, not EVERY home is flying off the market pay close attention to DOM (days on market) which greatly increase your chances of negotiating a more favorable deal.
Should I Look in Another Area?
You can change the interior of a home, some of the exterior but you can’t change the location of the home. Focus your search on the areas where you WANT to live. It is always easier when you have more than one option so explore the city and surrounding communities, you might fall in love with an area you weren't orignally considering.
Should I Postpone My Search?
I wouldn't recommend it. Especially, with the increasing home prices that are very prevalent in and around Houston. Houston still is a very affordable city. Just keep in mind that it might take more than one offer (stay and remember to be competitive if the market supports the price.
Know your market and understand your financial standing within that market.