Crucial Home Buying Tips to Compete in a Seller’s Market

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With many houses selling for over asking price with multiple offers, how can buyers compete in what seems to be a firmly entrenched seller's market? 

While many experts are hopeful that the blistering pace of price increases will slow in the coming year, there are many things home buyers can do now to set expectations and increase their chances of finding a new home. 

Set Realistic Expectations

In a hot housing market, you may have to compromise on your wish list to secure a home. According to Victoria Cornell, you don't have to find your forever home right off the bat. “Purchasing your first home is exciting and is a big life goal for so many.” 

She goes on to say that in a strong seller's market, “it's okay to focus on getting your foot in the door and not purchase your dream house. You can always renovate, build an addition, or move again later. Your first purchase into the housing market is the first step to many other opportunities.” 

Buy What You Can't Change

One of the essential rules in real estate is “location, location, location.” While the location isn't everything, it certainly falls under the category of something you can't change about a house after you've bought it. 

According to a recent Bankrate survey, 43% of homeowners have at least one regret about buying their current home. While some regrets are fixable, such as paint colors or a kitchen, others are not. 

Inflation Can Be Your Friend

Many first-time home buyers are understandably worried about rising home prices. With inflation surging over 7% to levels not seen since 1982, almost everything is more expensive than a year ago. 

However, with interest rates still near historic lows, you can borrow money now and effectively pay it back with cheaper dollars in the future. 

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