How to Buy A House During A Tough Real Estate Market

Posted by Kent Redding on Wednesday, April 18th, 2018 at 11:54am

 

By the Kent Redding Group

AUSTIN, TX. – There’s no doubt that the 2018 Real Estate market continues to be one the toughest ever, especially in Austin where inventory remains low and competition among buyers remains high.

Thankfully, even though it may be difficult to buy a home in Austin for some buyers in 2018 it’s not impossible especially if you follow these tips.

Hunt hard

It's not a market for the faint of heart.

The median home price right now is up 7.6 percent from last year and up 15 percent compared to the year before that, according to Zillow. And compared to three years ago? Up nearly 22 percent.

These price hikes, more than higher rates, make the costs prohibitive for some buyers.

And inventory is tight because homes are selling so quickly.

"If you are struggling with the fact there aren't a lot of options, you have to be looking every day," she said. And move fast if you do find something you like.

Be prepared

It's even more important in a challenging real estate market to make sure you have the basics covered: check your credit, know what you can afford and come to the hunt preapproved for a mortgage.

Homes in many markets are receiving multiple offers, so be ready to compete. Consider ways to sweeten your deal: a bigger down payment, more earnest money or a shorter closing time may give you an edge.

You also may also want to consider an escalation clause, which allows a buyer to say they will pay a certain amount over any higher offer up to a ceiling.

And cash is still king. An all-cash offer means there are no appraisals or mortgages to slow (or possibly derail) the deal.

If you can, consider asking for help. Olsen said that in pre-recession days, about 18 percent of buyers accepted a gift from family or friends. Now it's about a quarter.

Search for Homes in Austin Texas

To get started with searching for homes in Austin Texas, or to get started with selling your home, contact the Kent Redding Group today by calling us at (512) 306-1001 or click here to connect with us online.

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