Photo 90001858 © Cammeraydave | Dreamstime.com

By Kristi Sauter

PRO Tips by Kristi Sauter

Buying in a HOT Seller’s Market

Sep 15, 2021 | 3:00 AM

This past year the residential real estate market has set records. According to the Multiple Listing Service (MLS) statistics in July 2021 the dollar value of homes sold in Alberta increased 17.8% to $3.1 billion, compared to the same time a year earlier. The average amount of days a residential home was on the market, in Medicine Hat, for the month of July 2021 were 41 which is down from 89 in 2020. Inventory is moving and this is exciting, however as a buyer this can complicate things.

What does that mean for you – the possible buyer?

You must be prepared. If that perfect house with the blue door and amazing backyard comes on the market you have to ensure that you have all your ‘ducks’ in a row.

Have you been pre-approved by a mortgage expert? This is key. You need to ensure that you are in a financial position to make an offer on your dream home. By being pre-approved you will gain a greater understanding about what your affordability bracket is, therefore you will be able to hone in your house hunting.

Do you have a down payment? It’s important to have your financial side of the deal ready and available. You don’t want to fall in love with a home, make an offer, only to lose it because you aren’t quite ready. This ties back to the pre-approval. By being pre-approved you will know what your budget looks like, and you can start setting aside funds to ensure you have at least 5% to put down.

IN THE COMMUNITY

'Compassionate Friends' offer peer support for bereaved in Medicine Hat

10h ago

POSTAL STRIKE

Donations to Medicine Hat non-profits drop over Canada Post strike

10h ago

IN THE COMMUNITY

Medicine Hat's Adopt-A-Rink program still seeking volunteers

19h ago

Is your credit in check? Make sure you don’t have maxed out credit cards or lines of credit. More than ever, lenders are being extremely cautious about who they lend money too and existing consumer debt can have a significant impact on your application. Make sure that you aren’t sitting at greater-than 50% loan capacity, so for example, if you have a credit card with a limit of $5,000 your outstanding balance should not exceed $2,500.

On the rare occasion be prepared to go into a multiple offer situation, this can be difficult. This is when more than one party are basically competing for the same property and at times the home can sell for greater than it’s listing price. Making all the previously mentioned tips even more crucial.

Shopping for a home and purchasing in a HOT sellers market can complicate things but if you follow a few steps and make sure you’re organized then you should be ready to snatch up that perfect place when it hits the market.

If you need help or would like anymore information on any one of these suggestions I encourage you to reach out to your favourite mortgage professional.