Tips on Buying a New Home in a Hot Market

 

Happy family lying on floor after buying new house

Anyone who has spent time looking at homes for sale in Frisco TX recently has probably discovered that it’s pretty challenging to find that perfect house and the competition among buyers is fierce. Buyers are closing on deals in a few hours, instead of the days it would take in a normal market. One reason is that the number of preowned homes for sale in the Dallas area this spring is at a more than 20 year low. And home builders haven’t been able to keep up with the demand for new homes because of wet weather, labor shortages and rising construction costs.

If you want to buy a new home, here are a few tips to help you succeed in a hot market:

  1. Line up your finances in advance – Because homes are selling so quickly, it’s imperative that you get your finances lined up in advance. Thousands of people are coming to the north Dallas area to take jobs for major companies like Toyota, State Farm and Liberty Mutual Insurance. In order to compete with those home buyers, you need to be ready to buy.
  1. Pre-qualify for a loan – Another time saver for home buyers in a hot market is getting pre-qualified for a loan. Sellers will be more inclined to accept your offer if they see that you have a mortgage qualification letter in place.
  1. Write a personal letter – Believe it or not, a personal letter from a prospective buyer may be the tipping point that results in a sale. Even though buying a home is a business transaction, a home is still a very personal thing. Sellers of pre-owned homes can be emotionally attached to their house, and want to make sure the buyer is someone who will take care of their former home.
  1. Prepare to fight for the home you want – In a hot market, sellers aren’t willing to do much negotiating so you need to be prepared for a fight. There have been examples of a house going on the market first thing in the morning, and by noon, it’s already under contract. Some houses have been sold without ever making it onto the Realtors’ multiple listing service. Your best chance for closing a deal is making the best offer you can right from the start.
  1. Be prepared to pay more than the asking price – A sellers’ market means there is too much demand and too little supply. As a result, prospective buyers can get into a bidding war for a home. If that’s the case, prospective buyers may offer $10,000 above the asking price and still lose out.

One reason home buyers may choose to buy newly constructed homes for sale in Frisco TX is to avoid getting into a bidding war over a pre-owned home. Besides, buying a new home gives you the opportunity to design it the way you want it, and not have to deal with someone else’s design aesthetic.

Landon Homes has just released new lots to build on in Richwoods Hollow. This community is located just minutes from the Dallas North Tollway and all the shopping, sports and entertainment Frisco and north Texas have to offer. Visit our website today to view the different floor plans we have available. With prices starting from the $430’s, these lots are sure to go fast.

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