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How to Stay Sane in a Crazy Housing Market

How to Stay Sane in a Crazy Housing Market


How to Stay Sane in a Crazy Housing Market

Buying a home always comes with stress, but this market is enough to make your hair fall out. People are purchasing homes within minutes of them hitting the market, sometimes sight unseen, with no contingencies. Many times, there are dozens of offers within hours – for thousands over asking price. If you’ve lost out on one or more homes you loved, and it’s making you crazy, you’re not alone. Before you abandon your search, take our tried-and-true advice for staying sane in a crazy housing market.

If you don’t follow any other tips, we implore you to follow our No. 1 rule:

Don’t Get Attached

It’s a fickle market, and falling in love with a house is probably going to end with your heart getting broken. Try your best to keep an emotional distance. It will help you handle not getting the home, and deter you from making a desperate, unwise offer that’s above your budget.

Be Patient

In this cuckoo market, it will probably take longer than normal to secure a deal. Putting deadlines on your homebuying plans will keep you up at night and stressed out during the day. Mentally prepare yourself for looking at more than a few houses and the possibility of making, and losing, several offers. Don’t start freaking out and making offers you can’t afford just to move the process forward.

Work With a Savvy Real Estate Agent

A knowledgeable, experienced agent is important in any market, but they are especially critical in the rapid-fire environment going on right now. Before choosing one, make sure they understand the neighborhoods you’re interested in. Ask how many homes they’ve sold in the last year and how long they’ve been in real estate in this area. Also make sure they’re responsive and available to communicate your offers to the sellers if you find a home you want to buy. Throughout the process, your agent will be able to keep you calm and focused, so you can reach a smart decision.

Know What You Want

This market demands decisiveness. If you hem haw around trying to decide if you like a house, it’s most likely going to be sold before you even get a bid submitted. Think about your absolute must-haves and what you cannot stand, along with your budget range and the areas of town you like. If a home hits the market that meets these standards, you’ll be ready to move quickly if you’ve already thought this through. Plus, it takes lots of pressure off you when you’re trying to decide in the moment.

Devote Significant Time to the Process

If you expect to only look at homes on the weekends, you’re setting yourself up for failure. Ask your real estate agent to send you emails as soon as homes in your price range hit the market to be one of the first to look them over. In a market that’s this flaming hot, you need to work your home search with as much free time as you can scrape together to be present for the homes you might want to buy.

Prepare to Offer Above Asking Price

The days of undercutting the asking price are long gone. Today, it’s more likely a home will sell for several thousand dollars over asking. Don’t waste your time putting in a low bid, because you’re not going to get the home if you do. Offer the full asking price – or more – to compete with the numerous other buyers champing at the bit to land a home of their own, too.

Avoid Homes Listed at the Top of Your Budget

Since we know many of the homes you look at will end up selling over asking price, it makes sense to avoid the homes at the top of your budget. Looking at these properties raises your expectations and, when your offer isn’t accepted, leads to crushing disappointment. Aim for viewing houses in the middle of your budget, so you can afford to bid above asking if needed.

Take Actions to Make Yourself More Competitive 

There are ways you can stack the deck against the other buyers to make yourself look better to the sellers. Keep your credit score high so there won’t be any issues with securing a loan. In fact, go ahead and talk to a mortgage originator and get pre-approved. Chances are good that if you wait to do this until you find the home you want to buy, the sellers will pick someone else who has gotten pre-approved. After all, the last thing a seller wants to happen is for the deal to fall through because a buyer can’t get financing.

This raging housing market is not for the fainthearted buyer. Keep your sanity AND land the house you want with a healthy helping of patience, a smart real estate agent, and some reasonable expectations. When you’re decorating your new home a few months down the road, you’ll forget all about the hurdles you had to clear to get there.

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020