How homebuyers can stick out in a crowded real estate market

The real estate market is poised for a significant shift following the Federal Reserve's decision to cut interest rates by half a percentage point on September 18. Many realtors and mortgage brokers predict that these lower interest rates will likely attract more buyers to the housing scene. This increased demand could drive home prices higher and intensify competition for an already limited inventory.

So, how do you stand out in this hot housing market? We sought advice from three seasoned real estate agents. They shared their best tips and explained why buying now — even with higher interest rates — could be smart for some homebuyers.

Not sure what mortgage interest rate you'd qualify for? Find out here now .

How homebuyers can stick out in a crowded real estate market

The experts we spoke to suggest three key strategies for gaining an edge in a crowded market:

Get pre-approved for a mortgage

"Get pre-approved with an understanding of your high or low," says Joe Chung, realtor at Equity Union Real Estate in Palm Springs, California. This way, you know exactly how much you can borrow and under what terms.

A good mortgage lender will look closely at your finances and help you find the best rate and loan options you qualify for. With pre-approval in hand, your agent can show sellers that you're a serious, financially qualified buyer — giving your offers more weight in a competitive market.

However, it's important to get a formal pre-approval, not just a ballpark estimate. It gives a more accurate picture of what you can afford and positions you to act quickly on suitable properties. Having your financials fully vetted upfront ensures you're focusing on homes truly within your budget.

Start the pre-approval process online today .

Work with an experienced real estate agent

A skilled real estate agent doesn't only help you find homes. They know how to secure the best deal possible in a competitive market.

Evelyn Lueker, sales associate at Auker Group in San Diego, California, told us she recently helped a family save $150,000 on a home purchase. In this instance, she found the perfect home for her buyer — but it was overpriced. So, she built a strong relationship with the listing agent by conveying the value of working with her. After establishing the relationship, Lueker learned about a pending price drop before anyone else. As a result, she was able to get her client's offer accepted within 24 hours of the price reduction — beating out other potential buyers.

By working with an experienced agent, you benefit from their market expertise and strategic negotiation skills. These advantages can help you close on the right home at a fair price, no matter the market conditions.

Visit the home the day it hits the market

In a crowded market, being first can give you a huge leg up.

Lauren Hurwitz, a New York-based licensed real estate salesperson at Compass, suggests visiting a home the day it hits the market. Then, "make a super solid offer that puts an end to open houses and showings," she advises.

Hurwitz also emphasizes that listing agents like buyers who act fast and show confidence. Even if you aren't 100% sure about the house, putting in a starting bid on day one "shows you have [a genuine] interest in [it]," she explains.

Plus, it doesn't cost you anything to place a bid at this stage — you have nothing to lose by getting your name in early.

The case for buying now

Many homebuyers are waiting for lower interest rates because they think that's the right move. But this waiting game could backfire. "As rates come down, so will supply. Prices and demand will inevitably go up," says Lueker. That's why she advises against counting on a rate drop — it's better to buy a home you love now, even if the interest rate isn't ideal.

Remember: You can refinance later if rates drop, but you can't go back in time to buy a home you missed out on.

The bottom line

Taking action today can position you to get your dream home , even in this challenging market.

Start by picking an experienced, highly recommended realtor to guide you through the process. At the same time, consult at least three lenders to understand your financial options.

Before you start shopping for the perfect home, consider Chung's sage advice: "[Think about] your future needs of a home, then lay [them] out like a vision board." From there, you can approach your home search with clear priorities.