No matter what the scenario is, purchasing a house is a stressful life event. One that will indeed have an impact on you for many years to come. This stress can become amplified if you plan on shopping homes for sale across competitive real estate markets that neighbour one another – such as Collingwood and Creemore. If you plan on purchasing a home that is located in a competitive real estate market; keep the following pros and cons in mind before you make your final decision.
Pros of buying in a Competitive Real Estate Market
You can Purchase an Investment Property
A competitive real estate market is the time to buy smaller homes for sale, in an effort to keep your costs lower. Given that you may not want a small property for you and your family in the long term. A hot real estate market can create a great chance to buy an investment property. Purchase it now and live in it until the market drops, and then you can find your dream home and rent out the smaller dwelling.
You can Offer Less
Find a home in Fergus or Guelph that has been sitting on the market for some time and make an offer under the asking price. Chances are, the owner will be keen to sell, given the state of the market and how long it has been sitting idle, and they may happily accept your offer!
You have more Choices
If the real estate market is hot, and most are staying away from purchases at this time, that is great news for you! If it is within your means to purchase in a competitive market, you will have more properties for sale to choose from and a better chance of finding one that meets your needs – despite the price tag.
Cons of buying in a Competitive Real Estate Market
You may end up Settling
If you truly need a house at a time when the real estate market is hot and your purchase cannot wait. You may end up settling for something you are less than thrilled with because it is the best option for your budget. While this is not ideal, there are obviously options for selling later on – but you may take a loss if the market has declined.
You will Pay More
Even more than simply the asking price alone, you may find yourself in a bidding war to be able to walk away with the property – and prices can escalate fast when it is a house on the line. Go in knowing this may be the case, but still have a cut off amount for your purchase.
You will have to be Quick
If you do not want to settle, or end up having to pay more, act fast. In a hot real estate market, the right house, with the right price does not stick around for long and taking too long to mull over your choice or get your finances in order may indeed cost you – the house!
Find a Competitive Real Estate Agent
While shopping for homes in a competitive real estate market can be a turn off for many and not quite the right atmosphere to meet their needs with the right strategy and a strong understanding of what you are getting into. For others it might be the perfect scenario.
If you think that this is right for you, do not hesitate to find the right competitive real estate agent that will help you find your perfect dream home in the a competitive market!
Competitive Real Estate Markets
Fifteen competitive real estate markets across Grey Bruce, South Georgian Bay & Southwestern Ontario.
- New Dundee
- New Hamburg
- Owen Sound