4 tips on navigating the spring home buying season

If you’re thinking about buying a home, get ready for some stiff competition. Realtor.com says the 2018 spring buying season is shaping up to be one of the most competitive in years.

“We have buyers who are shopping this year who were unsuccessful when they were shopping last year,” says Danielle Hale, chief economist at Realtor.com. “They are looking for greener pastures this spring, but unfortunately the market doesn’t seem to be providing that. We continue to see very few listings on the market, record low inventory and a lot of competition.”

Nevertheless, Hale says buyers are willing to stay the course and are optimistic about closing on their dream home. She says consumers are implementing four strategies to get a leg up on competition:

Set price alerts

Set up email alerts once you narrow down the type and price range of the home you desire. This will allow you to be notified as soon as a property with your specifications hits the market. You can act quickly and decide whether to visit the home or put an offer down. Hale says sellers are paying attention to the bids they receive first, especially in a situation where they are likely to get multiple offers.

Check listing websites every day

Hale says information gathering techniques are popular among home buyers this season. In addition to setting up price alerts, they are going online every day to look at available properties. She says more than 2 out of 5 people are using this strategy. As soon as a new listing comes up, shoppers go to see the home or decide whether to make an offer right away.

Offer above listing price

Hale says buyers under 54 years old are more likely to offer above asking price. But she does stress that this approach is not for everyone. If you are searching at the outer edge of your price range, it’s often difficult to pony up more money. She says some shoppers are searching a little below their price range so they can put in an offer above the listing price.

Put more than 20% down

Buyers are showing sellers they are serious by bringing cash to the table or putting 20% or more down. Hale says the extra funding not only reduce a buyer’s reliance on as much financing; it shows sellers you have your financial house in order. She says these shoppers also stand out because they tend to be pre-approved for a mortgage. While younger people typically have difficulty putting more than 20% down; older individuals who have more cash or equity from owning a home previously are usually able to compete better.

“It’s a tough market out there for homebuyers,” says Hale. “The best thing they can do is prepare and know that they are probably going to be up against some competition from other buyers. There aren’t a ton of homes on the market for sale, but if they are persistent, employ some smart strategies and let sellers know they are serious, they probably will be successful. But it won’t be easy.”

Linda Bell joined FOX Business Network (FBN) in September 2014 as an Assignment Editor. She is an award-winning journalist with more than 20-years’ experience covering business content. You can follow her on Twitter @lindanbell.