It is true that the housing market has cooled down from the frenzied pursuit of real estate that pervaded the COVID-19 pandemic, and it has cooled down considerably. However, lovely turnkey homes in desirable locations are still receiving multiple offers and often selling at high prices.

The opposite can be true at the same time.

Rising mortgage rates have thinned the ranks of buyers. But higher interest rates have also scared off many potential home sellers, many of whom are also buyers. This has resulted in many more buyers than properties for sale. As a result, whenever a ready-to-move-in home in a good school district comes up for sale, buyers pounce on it. These homes sell like hotcakes in a highly competitive situation.

What doesn't sell well are: homes that are an eyesore, need some work, are located in less popular areas, or are overpriced. Buyers either can't afford or are unwilling to pay the extra cost to upgrade these properties. They are struggling with significantly more expensive monthly mortgage payments, which are 79% higher* than those of homeowners who bought two years ago.

Therefore, first-time buyers looking for a turnkey home in a great neighbourhood need to have a strategy in place if they want to be competitive.

1. Know your local market

Forget about what is happening in the national housing market. Focus on what is happening locally. It doesn't matter if house prices are falling in one part of the country and rising in your area.

Look at how long homes in the neighbourhood you want to live in have stayed on the market, including those gorgeous turnkey homes. Are they selling for more than, equal to or less than the asking price? Look closely at comparable homes that have sold in comparison. Your real estate agent should know if you need to waive contingencies and pay a high down payment to accept an offer in this market, or if you can ask the seller to cover your closing costs.

Having this information will help you work out how much to offer, what to ask for, and what you may need to concede.

2. Get pre-approved for a mortgage

I've heard countless stories of people who just wanted to see what was out there and visit some open houses before deciding whether they wanted to buy. Inevitably, they fall in love with one of the properties. However, they hadn't been pre-approved for a mortgage, so they weren't sure if their credit score was high enough to get a loan. As a result, their house was replaced by one of the other six offers the seller received from pre-approved buyers.

Do yourself a favour and get pre-approved for a mortgage before you start attending open houses. This key step will also help you to buy a home in a price range you can comfortably afford.

3. Find a real estate agent you trust

Your real estate agent is your guide through this unfamiliar, emotional and extremely stressful process.

It is important that you find someone you trust to help you make what could be the biggest purchase of your life, one that you could spend 30 years paying off.

Get recommendations from friends, check online reviews and make sure they've worked with buyers in a similar price range in the area you're looking. Make sure it's someone you're comfortable with finding a home in the next few months, or however long it takes.

If your agent is pressuring you to make an offer on a house you're not sure is right for you, or is offering more than you can afford, or simply doesn't take your concerns seriously, find someone else.

4. Paying more than a down payment

Sellers don't want deals to fall through or their homes to languish on the market. When these things happen, other buyers often think there is something wrong with the house. Sellers may be forced to accept a low-ball offer or cut their asking price. Therefore, they want to be as sure as possible that the buyer they choose will complete the sale.

This is why they tend to look more favourably on buyers who can make a larger down payment. Many sellers and their agents mistakenly believe that these buyers are more financially stable and that the deal is more likely to close. They will sometimes even accept lower offers with higher down payments.

If you are one of the lucky buyers with more cash at your disposal, at least a 20% down payment can help you win the bidding war. Plus, you won't have to worry about paying private mortgage insurance every month.

5. Offer convincing terms

A bidding war is not won by price alone. Terms are also important, as the real estate agents I work with like to say. You may well no longer have to waive the contingency of inspections and appraisals, or pay the transaction costs that sellers generally cover, but it may depend on how competitive you are in the marketplace.

Think about what you can offer. Can you close a deal quickly? Can you offer sellers a more flexible schedule to vacate their home - or even rent it back to them if they need to postpone their own move?

You can also forgo the traditional home inspection and ask for an assessment of the structural and engineering parts of the home. This shows the seller that you're not going to blow it or back out unless there are some expensive problems with the home, such as problems with the roof, boiler, foundation, electrics or plumbing.

6. Give an unpopular home a second look

If you see a home that has been on the market for a while and is in a good location, you may want to take another look. After all, it's what's underneath that counts. Some of the problems may be mainly cosmetic and a fresh coat of paint, some simple work and some re-flooring could make a big difference.

It may be worth looking at the house to see what you want to do and then contacting a local contractor to see how much it would cost to fix these problems. If there is little interest in the property, the seller may be able to accept a lower offer. You can use the money you save to fund the work.

If they are eager to sell, they may even fund your closing costs. Or they might buy your mortgage rate, which could save you a lot of money in the first few years of the mortgage.

It doesn't hurt to negotiate. The worst they can do is turn down a house you don't like.

7. Consider downsizing, lowering expectations or moving further away

No one wants to hear that they may have to make compromises to become a homeowner. Unfortunately, however, this is exactly what many first-time buyers will be forced to do.

Sometimes a well laid out small house can meet your needs just as well as a larger one, but it costs more and is more expensive to maintain, heat and cool. Perhaps there is a basement or attic that could eventually be finished to increase the square footage. Or you may want to consider a townhouse or flat rather than a single family home. (Just make sure you take into account maintenance and homeowner's association fees, which usually go up at any given time.)

It may also be helpful to figure out what you want and what you need. You may want a garage, even though you don't need one. A pool in the backyard might be nice, but it's not essential. Meanwhile, you may decide that a short commute, a chef's kitchen, and a large backyard for the kids to play in are your priorities.

Finally, you may want to expand your search radius. Sometimes buyers can find a larger new home at a lower price if they are willing to move further away from the big city. However, the cost of doing so may be a longer commute.