6 Home-Buying Tips for the Current Market

6 Home-Buying Tips for the Current Market · Credit.com

In September 2017, sales of new homes in the United States shot up to the highest level in nearly a decade.

The Commerce Department reported an 18.9% increase for the month, during which about 667,000 newly built homes were sold—a figure not seen since October 2007. September's increase also represented the biggest month-over-month percentage gain since January 1992.

While such figures may be great news for those monitoring the robustness of the country's housing market, it's not ideal news for buyers of modest means.

These statistics mean that Americans, unable to find existing homes, are increasingly turning to new construction. At the same time, however, homebuilders are overwhelmingly focused on creating higher-priced housing, which often shuts out buyers at the lower end of the market.

For home hunters who may not have a limitless budget (and that's most of us), the already challenging home-buying process may be getting harder.

That doesn't mean you should give up on owning a home. But it does mean you need to bring your A game, be aggressive, and think creatively. Check out these six tips to become a home-buying master.

Don't Expect (or Waste Time Looking for) Hidden Gems

In rising markets, there's one thing that's fairly certain: the properties for sale have been thoroughly picked over.

"You need to have realistic expectations about what you will find," says Mary Clare Bland of Moving2Madrid.com, a property shopping company that works exclusively with buyers. "If you expect to find a bargain . . . you will end up being frustrated and discouraged."

Not only that, she says, but you could waste a great deal of valuable time searching endlessly for that hidden gem.

Make the First Offer

When affordable houses are few and far between (and snatched up quickly at that), it's important to stay on top of new listings and be ready to pounce.

Brian Davis, co-founder and lead real estate and personal finance writer for SparkRental.com, suggests that a great way to do this is by creating alerts on property listing sites. That way, you'll be notified when new homes that meet your criteria come onto the market.

In addition, Davis recommends finding an extremely proactive realtor who will make sure you're the first person in the door when a new property is listed, so you can be the first to make an offer.

And one more note about selecting a real estate agent—it's a good idea to look at the firm they work for.

"Often, realtors who work at good firms will give preferential treatment to other realtors who work at good firms because they know that they're more likely to have a professional and smooth transaction," says Kristina McCann, a broker for Alain Pinel Realtors.