•  A smart pig on a stack of books
  • Some buyers should consider avoiding competitive markets


    While athletes usually want to train or face the best competition at all costs, that's not always the best idea for potential homebuyers. In fact, avoiding fiercely competitive housing markets could help a prospective homebuyer save a ton of cash.

    Looking back at 2014, Redfin, a real estate information firm, stated some housing markets were much more competitive than others. The nation largely experienced a decrease in home-buying competition, but a few markets on the West Coast bucked the trend.

    For example, the Sunset District neighborhood in San Francisco was once a "last resort" among the city's buyers, according Redfin agent Derrick Lee. But in 2014, homes in Sunset District lasted only 14 days on the market and sold above asking price nearly 88 percent of the time.

    That pushed the median sales price up to $955,000, a 12.5 percent growth during 2014. Additionally, the average home in the neighborhood netted five offers while listed and received cash offers 28.8 percent of the time. Those numbers made Sunset District the most competitive neighborhood in the U.S. during 2014.

    "Sunset is getting due respect for its density of good schools and relative affordability," Lee said in a release. "Older residents who have paid off their homes are cashing in while new families and renters are moving in. Cafes and trendy restaurants are popping up to cater to their tastes. Surfing and events like the free Stern Grove concert series and Outside Lands music festival are also drawing attention to the western most neighborhood in the city as well."

    Other markets that are ultra competitive
    San Francisco had two other neighborhoods in 2014's top five most competitive housing markets: Castro and Bernal Heights, which finished second and third, respectively.

    Redfin agent Mark Colwell knows all about the intense competition for homes in Castro.

    "I was recently able to help my clients buy a $2 million home in the Castro using the preemptive offer strategy, which means submitting a very competitive offer before the offer deadline to get the sellers to accept before reviewing all the other anticipated bids," Colwell said.

    But not all buyers and real estate agents are so savvy. When trying to land a dream home in a competitive market, it's a good idea for potential buyers to get all of their financial paperwork in order to ensure a smooth buying process. That means being prepared to deal with lenders in order to secure mortgage loans.

    How to secure a home in a competitive market
    Fox News reported it's vital for buyers to get the right lender and real estate agent if they want to land a home in a competitive market.

    A loan officer's reputation is incredibly important when dealing with real estate agents who are in charge of the deal. If a loan officer is trusted in the industry, it could help a potential buyer secure a home in a competitive market. If the opposite is true, a homebuyer might be disregarded for other buyers with a better lender.

    When looking for a real estate agent, Fox News urges homebuyers to ask family and friends for a recommendation. If that's not possible, it's never a bad idea to read online reviews and experiences people had with a particular agent.

    While the biggest offer is likely to help, it's not the most important aspect to securing a home, according to Zillow. The real estate firm said the terms and conditions of a bid are very important, so presenting a bid in a professional way can make waves with certain sellers.

    That means understanding what a seller needs is paramount. If they just bought a place and need to move quickly, give them a good, clean offer as soon as possible.

  • The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its affiliates and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.