If your recent efforts to buy a home have led to disappointment, reconsider your strategy and try these tactics instead.

The low inventory of homes for sale paired with highly motivated homebuyers have led to fierce competition. While it’s a great situation for home sellers, the current home market creates difficulties for homebuyers. Here are some tips to help get the home you want in a market where sellers get multiple good offers.

Consider bringing extra cash to the deal
In a hot market, some buyers ante up with extra money in case the appraisal value falls short. For example, a buyer may promise to cover up to $10,000 if the appraised value is lower than the purchase price. Extra cash like this can make your offer stand out among several others the seller may be reviewing.

Be prepared for bidding wars
The limited supply of homes has driven the cost of many homes above asking price. As buyers compete, offers are often 1-3% higher than asking prices. To keep the final home price within your budget, look at homes that are listed below what you’re able to pay. This will give you financial wiggle room to bid over asking price.

Know your numbers
In a housing market where properties move fast, it’s easy to get caught up in the frenzy of bidding wars and the fear of missing out on a great home. Paying more may get you the home, but do you really want to strain your budget every month for the foreseeable future? Know your numbers and stick to your budget.

Expand your geographic search
If your job allows you to work from home even part of the week, commuting time becomes less of an issue. If you’re not finding affordable homes in your target neighborhoods, consider expanding your geographic search.

 Think carefully before you waive the inspection contingency
Since the pandemic began, many homebuyers have waived contingencies for inspections. Essentially, these homeowners buy properties “as is” without any room for negotiation for property flaws. This opens buyers up to the potential for financial burdens if the home needs major repairs. Are your pockets deep enough to cover the purchase price plus significant repairs if they are needed?

Get pre-approved rather than pre-qualified
To a seller, a buyer who is pre-approved is a safer bet than one who is pre-qualified. Pre-qualification is a general assessment of how much you can borrow. Pre-approval means the bank has given you a conditional commitment to make the loan. Once you find the house, your financing is ready to go as long as the home meets the lender’s requirements.

You can get pre-approved for a home mortgage with our easy online application. Or you can get the process started by calling one of our lending experts at 800-991-2221.

Consumers helps more than 2,000 members finance land, first and second homes, and home improvement projects each year. We’d love to help you with a mortgage or home equity line of credit; contact us online or call us at 800-991-2221.