By Ben Antkowiak, REALTOR®
Buying a home in today’s hot market can feel overwhelming. Multiple offers, rising prices, and fast-moving timelines can make buyers feel pressured to act before they are ready.
To stay competitive without sacrificing protection, it’s important to know what to expect and how to prepare. Here are a few key things to keep in mind as you navigate the process and position yourself to succeed.
Real Estate is Local
If you listen to the national headlines, you may see stories of how the market has shifted to a buyers’ market and homes are sitting on the market longer than any time in recent history. However, real estate is a local or even a hyper local phenomenon. In certain areas and neighborhoods in Maryland, bidding wars and offers above the asking price are still the norm.
This is a great example of why it is important for you to find a trusted real estate professional to represent you. One who knows the numbers, the local markets, and is a strong negotiator, so you don’t overpay for a home or run into a potential appraisal problem at settlement.
Helpful Hints:
- Expect multiple offers and sales above list price in many areas
- Partner with an agent who knows market values and potential appraisal risks
Inspection or No Inspection?
One of the biggest challenges in today’s market is that buyers who include a home inspection in their offer often lose out. You shouldn’t skip protecting yourself, but you also need to be strategic to have a chance at winning the house.
Smart options include buying “as is” with the right to inspect, keeping the inspection period short, or doing an inspection for informational purposes only. At minimum, if you have a contractor friend or family member, bring them along for a walk-through to point out concerns. If you don’t know the lifespan of a roof or how to spot wear, get the inspection. Remember, you’re not just buying a home—you’re also signing up for a long-term maintenance project.
Finally, ask the seller for a home warranty, or purchase one yourself that covers big ticket items like HVAC and sewer/septic systems. It won’t prevent issues, but it gives you a safety net when something breaks in that first year of ownership (because something always does).
Helpful Hints:
- Always get an inspection but know how to structure it in a hot market
- Consider as/is with inspections, shorter timelines, or informational-only inspections
- At the very least, get a home warranty from a reputable company
Financing
Another area to consider is what type of financing you are using for your purchase. Paying cash or using a conventional loan can require different strategies than FHA, VA, or USDA financing, or products through programs like the Maryland Mortgage Program. While
Maryland law provides protections against source of income discrimination that prevents outright rejection of offers using the latter loan products, but they usually require some added pieces that protect the buyer and the loan like appraisals, inspections, certification classes, and the like.
Getting fully pre-qualified and knowing exactly what is required of you is of utmost importance before you even start shopping. In a hot market, if you find a home you like, chances are half a dozen other buyers like it too, and they’re ready to move. You need to be able to submit your offer quickly, with terms that stand out for the right reasons.
Helpful Hints:
- Be strategic with offers based on your financing type
- Get qualified for a mortgage and not just pre-qualified; it’s important to move fast in this type of market so make sure you are ready
- If you like a home, chances are multiple other people are like the same home
Building Your Team
These are just a few of the key things to keep in mind when buying in a competitive market, but the most important step you can take is to surround yourself with the right team. Finding a REALTOR® and a lender you can trust—professionals who know the local market, can guide you through tough decisions, and will advocate for your best interests—can make all the difference between winning the house you love and missing out. The right partnership ensures you’re not only prepared to compete but also protected every step of the way, so that you don’t get burned by a hot market.
