Though there are certain tasks you should always complete to get ready to buy waterfront real estate, these items are even more essential when you're shopping in a seller's market. In a seller's market, properties may be in short supply or property values may be at a premium. Follow these tips when buying waterfront condominiums in a hot real estate market.
1. Get Pre-Approved for a Mortgage
Most potential home buyers know that they should at least get pre-qualified for a mortgage. Getting pre-qualified for a mortgage involves providing information regarding your financial situation (your income, assets, and debt levels) so that the lender can give you an estimate of the amount that you'll be approved to borrow.
However, getting pre-approved for a mortgage takes things a step farther. When you get pre-approved for a mortgage, you fill out an official mortgage application, providing accurate information and giving the lender permission to pull your credit report. The lender will complete a credit check and complete a thorough review of your finances. Though it's a more comprehensive process to get pre-approved for a mortgage versus simply pre-qualifying for a loan, a pre-approved buyer can be more attractive to a home seller presented with multiple potential buyers.
2. Come in With Your Best Offer
A hot real estate market isn't the time to try to be stingy and hold out for the best deal possible. Instead, your initial offer should be your best offer. Don't overpay for the property, but don't try to come in below market value or ask for a lot of concessions. Your real estate agent can tell you if a concession is customary for your market (such as leaving the appliances) or if your seller is likely to balk at such a request.
If your seller is presented with multiple offers, the goal is for the seller to accept your offer over the other options. See that your earnest money is a respectable amount and that your list of contingencies (like a home inspection or financing) is reasonable for your area.
3. Have Documentation That Supports Your Position as a Strong Buyer
Make sure that you have all your paperwork in order before you start shopping for your waterfront condo. You should have a letter from your lender that states how much you are pre-approved for. Check that your assets are easily accessible before you start looking for condos so that you can close early if the seller prefers an early closing date.