Todayโs real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, itโs more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.
1. Listen to Your Real Estate Agent
A recent article from Freddie Mac offers guidance on making an offer on a home in todayโs market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:
โRemember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.โ
Your real estate professional should be your primary source for answers to the questions you have when youโre ready to make an offer.
2. Understand Your Finances
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of todayโs prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers youโre a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.
3. Be Ready to Move Quickly
According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of todayโs competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.
4. Make a Fair Offer
Itโs only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer thatโs too low can lead sellers to doubt how serious you are as a buyer. Donโt submit an offer that will be tossed out as soon as itโs received. The expertise your agent brings to this part of the process will help you stay competitive:
โYour agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.โ
5. Be a Flexible Negotiator
After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, itโs important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you donโt want to forego. Freddie Mac explains:
โResist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold โas-isโ, which means the seller wonโt pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you canโt afford to fix.โ
Bottom Line
Todayโs competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.
Content previously posted on Keeping Current Matters
Contact Us
