April 4, 2019
Purchasing a property in a competitive housing market can be a challenge, it is easy for other buyers to swoop in and take properties you have your eye on if you can’t move quickly enough. But there are some things you can do as a buyer to help reduce the likelihood of that and to ensure you are able to get the property you have your eye on. Let’s look at some ways to quickly obtain a property in a competitive housing market.
One of the biggest obstacles buyers face in a competitive housing market is obtaining funding fast enough to move on a property before other cash or pre-qualified buyers do. Hard money loans can be a good option for buyers looking for an investment property. This would be ideal for buyers who plan to renovate and flip a property, or for buyers who need to move quickly but then plan to obtain other funding long term (refinancing with a different mortgage or selling another home to pay off the new property, etc.).
Broaden Your Search
In a seller’s market there are more buyers than there are sellers, making the market very competitive. In this situation you may want to consider broadening your search criteria. Looking for a “diamond in the rough” type property may be a great way to find the perfect home at a good price. This type of property may need cosmetic work that turns off other buyers, but with some TLC it could be the perfect property. In a competitive market you may not be able to check off every box on your dream home list, but by broadening your search you may be able to find properties that can be renovated into your dream home.
In many cases buyers put offers on homes using a contingency of selling another property. In a very competitive market buyers can’t afford to have a contingency because sellers will always choose offers that don’t have a contingency. In this type of scenario it is best for the buyer to obtain funding that isn’t dependent on a contingency. This can be a challenge when money is tight, but it may be necessary for getting the property you really want.
If you are looking for the perfect property in a competitive market, whether it be an investment property or a home for yourself, there are some things to consider. While it may not be an ideal situation for you, the buyer, it’s not impossible to find the right property. At Maryland Private Mortgage we specialize in hard money loans in Maryland and other special loans. We’d love to discuss your situation with you and help you obtain the right funding for you! Give us a call today!
The Maryland Private Mortgage Lending Team