Todayโs homebuyers are faced with a strong sellersโ market, which means there are a lot of active buyers competing for a relatively low number of available homes. As a result, itโs essential to understand how to make a confident and competitive offer on your dream home. Here are five tips for success in this critical stage of the homebuying process.
1. Listen to Your Real Estate Advisor
An articleย fromย Freddie Macย gives direction on making an offer on a home. From the start, it emphasizes how trusted professionals can help you stay focused on the most important things, especially at times when this process can get emotional for buyers:
โRemember to letย your homebuying teamย 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
A real estate professional should be the expert guide you lean on for advice 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 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. Doing so make it clear to sellers youโre a serious and qualified buyer, and it can give you a competitive edge in a bidding war.
3. Be Prepared to Move Quickly
According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average property sold today receives 3.7 offers and is on the market for just 21 days. These are both results of todayโs competitive market, showing how important it is to stay agile and alert in your search. As soon as you find the right home for your needs, be prepared 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 make 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. Stay Flexible in Negotiations
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. You can strengthen your position 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). Freddie Mac explains that there are, however, certain contingencies you donโt want to forego:
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. Letโs connect to make sure you rise to the top along the way.
Content previously posted on Keeping Current Matters
Contact Us
